A California jeweler has been sentenced to 90 days in jail for a scheme targeting military families.
Ramil “Randy” Abalkhad, owner of Romano’s Jewelers, was charged with felony conspiracy to engage in illegal financing and debt collection practices targeting sailors and Marines in San Diego.
Abalkhad was sentenced to three years of felony probation, including a requirement that he serve 90 days in jail. Abalkhad will also be required to pay restitution to victims and to cancel outstanding debts owed by those victims.
Co-defendant Melina Abalkhad, who was previously sentenced, will be required to complete a misdemeanor diversion program for her role in operating Romano’s affiliate, MBNB Financial.
“Mr. and Mrs. Abalkhad thought they could get away with targeting our young men and women in uniform,” said Attorney General Xavier Becerra. “Today’s sentencing should send a clear message to them and others looking to commit predatory crimes against our service members.”
According to a press release from the attorney general’s office, Romano’s had several retail locations in California, including stores near Camp Pendleton Marine Corps Base. The stores allegedly targeted young Marines and sailors, some fresh out of boot camp, encouraging them to buy jewelry for themselves and for their families and loved ones on credit.
According to the criminal complaint, Abalkhad failed to provide legally required disclosures about monthly payments, interest rates or others terms of financing. Those customers who fell behind on their payments were allegedly harassed by the defendants’ debt collectors. In addition, the complaint alleged that Romano’s used debt collectors who falsely posed as attorneys and illegally threatened servicemembers with court martial and other military disciplinary actions.
The California Department of Justice filed a 14-count felony complaint charging Abalkhad with conspiracy to violate the Unruh Act, which protects consumers who buy goods or services on credit, and the Rosenthal Fair Debt Collection Practices Act, which protects Californians against unlawful debt collection practices.
A third defendant, MBNB employee Ramiro Salinas, was also charged with conspiracy to engage in unlawful debt collection. He was sentenced on Oct. 18.