New York Man Indicted in Multi-Million Dollar Fraud and Money Laundering Scheme

PROVIDENCE – A federal grand jury in Rhode Island returned a seven-count indictment alleging that a New York resident participated in a fraud and money laundering scheme that defrauded a Rhode Island law firm and other businesses of more than eight million dollars, announced Acting United States Attorney Sara Miron Bloom.

The indictment charges Tushal Rathod, 45, of Baldwinsville, NY, with wire fraud conspiracy, wire fraud (two counts), aggravated identity theft, money laundering conspiracy, money laundering, concealment of money laundering, and engaging in transactions with proceeds of criminal activity.

The indictment alleges that Rathod worked with individuals that he met online to receive fraudulent proceeds and launder those funds through businesses and financial accounts, some of which he created, keeping an approximate 10% cut for himself.  The fraud scheme involved business email compromise, account takeover, and counterfeit checks. Among the victims of the fraud and money laundering conspiracy detailed in the indictment are a Rhode Island law firm who was defrauded of more than $163,200; a California credit union that was defrauded of approximately $8,000,000; and an Information Technology company of $154,900.

As reflected in the indictment it is alleged that:

• Rathod opened business bank accounts at multiple financial institutions to receive fraudulent proceeds and recruited others to do the same.
• Rathod monitored the activity in those accounts and communicated account information to other members of the conspiracy.
• Rathod created and provided false documents to financial institutions to gain access to funds deposited into the receiving accounts, which he withdrew and transferred in a manner designed to conceal the nature, source, location, ownership, or control over the funds.
• Rathod converted some of the fraudulent proceeds into Bitcoin.

A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.

The case is being prosecuted by Assistant United States Attorney Sandra R. Hebert.

The matter was investigated by the FBI.

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