Seven Charged In International Fraud Conspiracy

50 Elderly Victims Lost $11 million

          GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten announced today that seven people were charged in a federal grand jury indictment, unsealed this week, accused of participating in a conspiracy that stole $11 million from 50 victims in West Michigan and around the country. Most of the victims were elderly.   

          “Elder fraud schemes prey on some of our nation’s most vulnerable citizens,” said U.S. Attorney Totten. “It’s critical to raise awareness of elder fraud to help protect our older loved ones from these types of crimes.  My office is committed to fighting all types of elder abuse in our community.”

          According to the indictment, victims of the conspiracy received a pop-up or other message on their computers warning that a virus had infected their devices.  The messages urged the victims to call a number to get help. When the victims called the number provided, they got a response from someone claiming to work for a tech company, such Microsoft or Apple.  In truth, they were scammers located in India, who scared the victims into giving money to the conspiracy with a variety of different ruses. 

          In one version of the scam, victims were told that their bank accounts had been compromised and they needed to withdraw all of their cash and give it to fake “federal agents” for safekeeping.  In another version, victims were told that their computers had been infected by a virus and they needed to pay for technical support.  In a third version, victims were told that they had been identified in a criminal investigation and needed to turn over money to clear their names.  Regardless of which ruse was used, the end result was the same: victims were convinced to give $11 million to the scammers.  Victims did this during in-person meetings with fake “federal agents,” by mailing boxes of cash to addresses provided by the scammers, by wire transfers to bank accounts controlled by the scammers, or through gift cards they purchased at the direction of the scammers.

          According to the indictment, the following defendants were the U.S.-based members of the conspiracy who collected fraud proceeds from victims on behalf of the conspiracy:

          The indictment alleges that Panchal and McNamara made six trips to meet with a victim in Lake County, Michigan, to collect $398,000 in fraud proceeds from her.  The victim had been convinced that her bank accounts had been compromised and that she was giving cash to “federal agents” for safekeeping.  It is alleged that Thibou helped arranged the meetings with the Lake County victim.  The indictment alleges that others around the country similarly fell victim to the scam.

          Earlier this year, two alleged members of the conspiracy located in India were arrested by the Delhi Police Special Cell. FBI’s Legal Attaché New Delhi provided investigative assistance to the Indian authorities.

          “Today’s indictment reflects the commitment of the FBI and our partners to protect older Americans from financial scams,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI’s Detroit Field Office. “These defendants allegedly defrauded victims by preying on their vulnerabilities.  If you believe that you or someone you know may be a victim of elder fraud, submit a tip to the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311).”

          According to the FBI’s 2022 Elder Fraud Report, 88,262 people over 60 were victimized in 2022, resulting in the loss of $3.1 billion, an 84% increase from 2021. Tech support and customer service schemes were the most common types of fraud reported.

Elder Fraud Prevention Tips

• Recognize scam attempts and end all communication with the perpetrator.
• Search online for the contact information (name, email, phone number, addresses) and the proposed offer. Other people have likely posted information online about individuals and businesses trying to run scams.
• Resist the pressure to act quickly. Scammers create a sense of urgency to produce fear and lure victims into immediate action. Call the police immediately if you feel there is a danger to yourself or a loved one.
• Be cautious of unsolicited phone calls, mailings, and door-to-door services offers.
• Never give or send any personally identifiable information, money, jewelry, gift cards, checks, or wire information to unverified people or businesses.
• Make sure all computer anti-virus and security software and malware protections are up to date. Use reputable anti-virus software and firewalls.
• Disconnect from the internet and shut down your device if you see a pop-up message or locked screen. Pop-ups are regularly used by perpetrators to spread malicious software. Enable pop-up blockers to avoid accidentally clicking on a pop-up.
• Be careful what you download. Never open an email attachment from someone you don't know and be wary of email attachments forwarded to you.
• Take precautions to protect your identity if a criminal gains access to your device or account. Immediately contact your financial institutions to place protections on your accounts and monitor your accounts and personal information for suspicious activity.

          This investigation was conducted jointly by FBI Detroit, Grand Rapids Office, Homeland Security Investigations, New Orleans, Louisiana, and the Lake County, Michigan, Sheriff’s Office. Additional investigative assistance was provided by the Delhi Police Special Cell, FBI’s Legal Attaché New Delhi, the U.S. Attorney’s Office for the Eastern District of Louisiana, the New Holland, Pennsylvania, Police Department, the Tennessee Highway Patrol, DEA Chattanooga, FBI New York, and FBI Tampa.  The prosecution is being handled by Assistant United States Attorney Clay Stiffler.

          The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.

###