A Denver man, Henry Aragon, 54, has been sentenced to five years in federal prison for his role in orchestrating a telemarketing fraud scheme that stole millions of dollars from vulnerable victims across the United States. This massive scam ran for over a decade, swindling more than 150,000 individuals out of their hard-earned money through fake magazine subscriptions.
Aragon’s sentence also includes two years of supervised release after his prison term. He has been ordered to pay $19,051,667 in restitution to the victims of his fraud and an additional $1,490,011 to the IRS for tax evasion. His actions, fueled by greed, left many victims—especially older adults—financially drained and emotionally devastated.
How Aragon’s Scheme Deceived Thousands
For over ten years, Aragon led a network of fraudulent telemarketing companies that targeted consumers across the U.S. and Canada. These companies operated deceptive call centers where employees were trained to use manipulative scripts designed to trick victims into paying for magazine subscriptions they didn’t need—or didn’t even know they were signing up for.
The scam often relied on a fraudulent “renewal script.” Telemarketers called victims and pretended to represent their current magazine subscription provider. They would claim they were offering to “reduce” the cost of an existing subscription. In reality, these companies had no affiliation with legitimate magazine publishers. Instead of lowering costs, they enrolled victims in multiple new subscriptions—each with its own hefty price tag.
Many victims, thinking they were saving money, unknowingly signed up for dozens of magazine subscriptions. A single victim could go from having one legitimate subscription to suddenly being billed for over a dozen fraudulent ones, all while believing they were reducing their costs.
The scheme disproportionately affected older adults, who were often less familiar with spotting such scams. Over the years, this elaborate operation defrauded tens of thousands of victims, raking in over $19 million in ill-gotten gains for Aragon and his co-conspirators.
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Tax Evasion: Adding Insult to Injury
In addition to defrauding victims, Aragon also evaded paying taxes on his stolen earnings. By not paying what he owed to the government, Aragon shifted the financial burden to honest taxpayers, depriving public programs of vital funding.
“By evading his tax liability, Aragon unfairly shifted the tax burden to honest American taxpayers to fund vital services such as education and infrastructure,” said Tom Demeo, Acting Special Agent in Charge of IRS Criminal Investigation in Denver.
Aragon’s fraudulent activities came to light after a thorough investigation conducted by several federal agencies, including the IRS Criminal Investigation, the U.S. Postal Inspection Service, and the FBI. These agencies worked together to expose the scam and build a strong case against Aragon and his co-conspirators. They also received support from the Treasury Inspector General for Tax Administration (TIGTA) and the Minnesota Attorney General’s Office.
The investigation revealed the staggering scale of Aragon’s tax evasion. While his fraudulent companies raked in millions of dollars, Aragon avoided paying over $1.4 million in taxes. His actions not only enriched himself but also cheated the public out of funds used to support essential services like schools, roads, and emergency responders.
Justice Delivered
On July 5, 2022, Aragon pleaded guilty to conspiracy to commit mail and wire fraud, as well as tax evasion. More than two years later, on November 7, 2024, he stood before U.S. District Court Judge John R. Tunheim and received his sentence: 60 months in prison, two years of supervised release, and orders to repay over $20 million in combined restitution.
The sentencing marks a significant step toward justice for the thousands of victims who were misled and exploited by Aragon and his operation. Victims suffered not just financial losses but also the emotional toll of being deceived and harassed by relentless telemarketing schemes.
This case serves as a reminder of the damage that fraudulent schemes can inflict on individuals and communities. It also highlights the commitment of federal agencies like the IRS, FBI, and U.S. Postal Inspection Service to holding scammers accountable for their actions. These agencies worked tirelessly to uncover the truth, dismantle the fraudulent network, and ensure that those responsible faced justice.
While Aragon’s sentence cannot undo the harm done to the victims, it is a clear message that such crimes will not go unpunished.
