Authorities have taken down a “cruel and malicious” transnational elder fraud scheme that stole greater than $5 million from over 400 victims throughout the nation, together with not less than 50 within the Bay State, with a mean age of 84.
13 people face costs in reference to the scheme that allegedly concerned a “call center” operation that misled aged victims into “believing that their grandchildren or other close family members were in trouble and needed money.”
“I am here to say we have had enough of this,” Massachusetts U.S. Lawyer Leah Foley stated Tuesday. “Preying on our elderly and the alleged conduct by these depraved individuals is ruthless and immoral.”
“These scams are not just financially devastating,” she added. “They are emotionally traumatizing. Many victims not only lost their savings, but their sense of safety, judgment and trust in the world around them.”
The takedown of the operation, primarily based within the Dominican Republic, got here after two years of “intensive, investigative efforts” between the FBI and authorities within the Caribbean nation, stated Ted Docks, particular agent accountable for FBI Boston.
Eleven of the 13 people who ran the operation had been arrested on Tuesday, together with six within the Dominican Republic, Docks stated. The 2 others had been beforehand arrested, one among whom has admitted to the crimes.
Charging paperwork allege that when the defendants obtained the cash, they laundered their illicit proceeds again to the Dominican Republic.
Docks described elder fraud instances as “probably the most heartbreaking of the financial violations we work.”
“Let me be clear: the harm done here was significant – retirements delayed, inheritances lost, lives turned upside down – all because of this crew’s insidious greed,” Docks stated. “Today’s arrests do not right these wrongs, but they stop these individuals from victimizing anyone else.”
“To the victims of these scams – who never told anyone what happened out of shame and fear – know that you are not alone,” he added. “You are not foolish. You acted out of love, and you should not be ashamed.”
Defendant Oscar Manuel Castanos Garcia is the “alleged mastermind” behind the operation, accused of overseeing name facilities within the DR, the place “he employed co-conspirators who spoke English and carried out what are commonly known as ‘grandparent scams.’”
So-called “opener” workers allegedly referred to as victims, pretending to be a grandson or granddaughter who was in an accident, whereas “closers” allegedly adopted up with one other name, pretending to be their grandchild’s lawyer, asking for cash to help them, in response to charging paperwork.
Callers would instruct victims handy over cash in “packages with cash to rideshare drivers who were ordered to the victim’s house by a ‘runner.’”
“The runners would then have the unsuspecting rideshare drivers deliver the packages to the runners at nearby locations,” a launch from Foley’s workplace states. “In some cases, the callers would direct the victims to ship packages of cash to specified addresses via mail or commercial carriers.”
“Oftentimes, the call center would allegedly call victims again and ask for additional funds for their grandchildren, sometimes two or three additional times,” the discharge provides. “For example, callers allegedly would claim that there had been a ‘mix up’ or that a ‘pregnant women’s baby was lost in the crash.’ At times, co-conspirators would allegedly order unwitting rideshare drivers to drive the elderly victims to the bank to withdraw additional funds.”
Federal authorities discovered concerning the scheme from Uber’s World Safety and Investigations Group after it found its platform was getting used to “carry out these scams,” Docks stated. He added that the corporate has “put mechanisms in place to prevent future losses to elderly victims.”
Foley stated it’s not clear simply what number of extra victims there are in Massachusetts apart from the 50 reported instances.
“There are, without doubt, other victims who just never reported the crime to anyone,” Foley stated, “whether it was because they just felt ashamed for being duped or sometimes they haven’t gotten to it or don’t know what to do.”
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