A Roslyn man faces up to seven years in prison for heading a Hicksville-based modeling agency that scammed dozens of clients out of more than $250,000 with the promise of helping their children reach celebrity stardom, law enforcement officials said.
Officials said James Muniz, 44, the president and chief executive officer of Model Talent Development Corp. and New Faces Development Center, Inc., ran companies that overcharged its clients for photo shoots, misrepresented contract terms and promised lucrative acting roles and modeling jobs for their children that did not exist.
Police have also arrested and charged Jennifer Santiago, 26, of Queens, a marketing director and online sales associate; Jennifer Diaz-Domenech, 31, of Brooklyn, a senior development director; and Michelle Alperin-Smith, 42, of Nesconset, a vice president of operations, in connection with the agency’s alleged fraud.
“Hundreds of families were led to believe that their child was the next big thing, only to learn that they were just next in line to be scammed,” said Nassau County District Attorney Kathleen Rice in a statement. “The defendants built a lucrative business by crushing the dreams of hopeful children and conning their parents out of their hard-earned money. With the valuable efforts of the Attorney General’s Office in this investigation, however, we have put a stop to the lies and will hold the defendants accountable.”
Model Talent Development and New Faces Development Center associates are alleged to have approached victims at shopping malls in Queens and Long Island, telling them they had a “look” that suggested they would be successful in the entertainment industry, officials said.
But a five-month joint investigation from Rice and state Attorney General Eric T. Schneiderman’s offices found that those scouted by Model Talent Development and New Faces Development Center were pressured into paying for the agency’s services, telling victims their children would lose lucrative opportunities if they did not sign contracts that officials said cost between $550-$3,000.
According to officials, Model Talent Development and New Faces Development Center exaggerated their connections with the entertainment industry and rarely secured employment for their clients, but provided photographic services and, for an additional fee, posted the photos on its Web site, Gigacomps.com. Months would then pass without clients receiving a phone call from the agency.
Many clients were told their children had received multi-year contracts with retailers like Macy’s, Toys R’ Us, Abercrombie & Fitch, Hollister, the Children’s Place, Target and JC Penny, officials said. They were then told, officials said, that if they did not enter into additional agreements with the agency within 24-48 hours the contracts would go to other people.
Officials said the payments from subsequent agreements were accepted in person or by telephone, but no jobs ever actually materialized. The investigation revealed Model Talent Development and New Faces Development Center did not have arrangements with any of the major retailers mentioned to clients.
“These suspects exploited something we can all relate to – the love and pride a parent feels about their child,” Schneiderman said in a statement. “The crimes we allege today are a clear-cut scam, and we are bringing the scammers to justice. My office will continue to work with our partners to hold fraudsters accountable and recover restitution for victims.”
According to officials, the Attorney General’s Office began civil proceedings against the agency in 2006, when it was known as New Faces and owned by Muniz’ ex-wife, and the company agreed to cease its operation and pay more than $250,000 in restitution.
But a new investigation was opened last December, this time against Muniz and Model Talent Development, after the Attorney General’s Office had received numerous complaints, and Rice’s office began its own investigation in April. Shortly thereafter, Schneiderman and Rice merged their investigations.
Muniz was charged with five counts of third-degree grand larceny, 15 counts of fourth-degree grand larceny, and a first-degree count of scheme to defraud.
Santiago, Diaz-Domenech and Alperin-Smith were each charged with multiple counts of grand larceny in varying degrees and a first-degree count of scheme to defraud. Each faces up to seven years in prison.
The two companies have also been charged with multiple counts of grand larceny and scheme to defraud, and face fines of up to $10,000 and restitution if convicted.
