Frauds of the Rich and the Famous: The Star-studded Saga of Jennifer Shah

Jennifer Shah rose to fame through her appearances on the TV reality show "The Real Housewives of Salt Lake City." More recently, however, she made headlines for her role as a real-life fraudster.

Alongside her accomplice, Stuart Smith, Shah faced accusations of orchestrating a telemarketing scheme that spanned nearly a decade, from 2012 to March 2021. Their scam, which peddled various "business services" for online ventures, targeted hundreds of victims across the United States, with a substantial number being over the age of 55, a demographic particularly susceptible to such swindles.

Behind the scenes, Shah and Smith generated lists of "leads" (a.k.a. potential victims) exclusively for the purpose of defrauding certain individuals. The duo was well aware that these unsuspecting folks would become prime targets for exploitation by others involved in the operation, wherein they would be lured into buying seemingly helpful coaching sessions and other products and services, all in the hope of achieving financial success online. Shah and Smith, in turn, reaped a portion of the proceeds generated from each lead they provided to the telemarketing network.

According to court records, victims were led to believe that the paid coaching sessions would empower them to generate more income from their online ventures. The true purpose behind these sessions, however, was to convince the victims that they needed to invest in additional products and services, most of which offered little or no genuine value, in order to achieve success with their online businesses. There was also a well-coordinated effort to obstruct victim refund requests.

Shah and Smith took extensive measures to conceal their activities. They registered their business entities under third-party names, used encrypted messaging apps for communication and orchestrated cash withdrawals to evade reporting requirements. Their intricate charade allowed them to perpetuate their scheme for years, all while amassing substantial ill-gotten gains.

Facing the Real Consequences of the Law 

Shah pled guilty to conspiracy to commit wire fraud as part of her involvement in the scheme. During her sentencing hearing, adorned in a Hollywood-worthy camel-colored pantsuit and leopard-print stilettos, she was ordered to pay restitution of over $6.6 million to her victims and forfeit $6.5 million, along with various luxury and counterfeit luxury items. She received a prison sentence of six-and-a-half years, followed by five years of supervised release. After reporting to prison, her release date was moved up by a full year to August 30, 2028.

While Shah's story shines as a glamorous example of fraud, it's essential to acknowledge that not all fraudulent activities are cloaked in rhinestones, glitter and leopard-print stilettos. As we observe International Fraud Awareness Week, it’s imperative for individuals and businesses alike to remain vigilant, recognizing that fraudsters can emerge unexpectedly from within their organizations. Shah's narrative serves as a high-profile reminder of this fact, but it is equally important to remember that numerous other less flashy fraud cases occur every day.

This article is part of a series exploring some of the most famous fraud cases straight from the headlines, additional articles include:

• Fraud Week 2023: Frauds of the Rich and the Famous
• Frauds of the Rich and Famous: The FTX Collapse and the Chrisleys
• Frauds of the Rich and Famous: Billy McFarland and The Fyre Festival

While Fraud Week may only be featured once a year, the professionals in our Consulting group help to rewrite the script for our clients by educating, assisting, and preparing them throughout the year to address their unique fraud concerns.

Check out our Schneider Downs Consulting LinkedIn page throughout the week for additional information from the ACFE. If you have any questions or concerns about fraud in your organization, please contact our team. 

About International Fraud Week

International Fraud Awareness Week, or Fraud Week, was established by the ACFE in 2000 as a dedicated time to raise awareness about fraud. The week-long campaign encourages business leaders and employees to proactively take steps to minimize the impact of fraud by promoting anti-fraud awareness and education.

Learn more at www.fraudweek.com.

About Schneider Downs Business Consulting

Our experienced team of business advisors leverage their experience and industry expertise to maximize value and minimize risk during acquisitions, litigation, arbitration, corporate reorganization and other major business transactions and transitions. Our team of experienced business advisors includes Certified Fraud Examiners (CFEs), Certified in Financial Forensics (CFFs) and Certified Mergers and Acquisition Advisors (CM&AAs).

To learn more, visit our dedicated Business Consulting page.