Participant In Fraud Conspiracy Sentenced To 63 Months

GRAND RAPIDS – Acting U.S. Attorney for the Western District of Michigan Alexis M. Sanford announced that Kaushalkumar Chaudhary, age 30, of India, was sentenced yesterday to 63 months in prison for conspiring to commit wire fraud.

Chaudhary was a courier or “money mule” for a conspiracy that targeted elderly and vulnerable victims. Individuals in India and the United States used the internet and cell phones to contact victims and make false claims using a variety of schemes. These schemes included that the victims’ social security account numbers had been compromised, that they were under federal investigation, or some other false reason why they should convert their financial holdings into cash, gold, and/or silver. Conspirators often claimed to be members of the Federal Bureau of Investigation, Federal Trade Commission, Federal Communications Commission, or some other government or law enforcement agency and falsely asserted that they could assist the victims in protecting their money.

Chaudhary, acting at the direction of his coconspirators, would travel to the victims’ homes or other pre-arranged meeting locations and retrieve the cash, gold, or silver from the victims. He would then drive to meet coconspirators at designated locations and receive a share of the proceeds as his payment. The balance of the stolen money would be transmitted to other coconspirators both inside and outside of the United States. Chaudhary picked up $70,000 in gold bars from one victim and retrieved money and valuables from thirteen other victims in various states in 2023 and 2024. He was responsible for hundreds of thousands of dollars in loss and was ordered to pay restitution to his victims in the amount of $524,947.

“My office stands ready to investigate and prosecute elder financial abuse in all its forms and will continue to hold perpetrators accountable and seek full restitution,” said Acting U.S. Attorney Sanford.  “Potential victims should stay vigilant—resist the pressure to act quickly, be cautious of unsolicited calls and emails, and remember that law enforcement and federal officials will never retrieve valuable items from you for protection.”

“No American deserves to be the victim of financial crime, but it is especially abhorrent when the perpetrator wasn’t in the country legally in the first place,” said ICE HSI Detroit acting Special Agent in Charge Jared Murphey. “Chaudhary’s actions defrauded 14 victims of over $500,000. Once he has served his sentence, he will rightfully be deported to his home country. I’m proud of our agents and their work with the Battle Creek Police Department and the U.S. Attorney’s Office for the Western District of Michigan to see justice served in this case.”

Homeland Security Investigations investigated this case and received valuable assistance from the Battle Creek Police Department.  Assistant U.S. Attorney Ron Stella prosecuted the case.

Federal law enforcement provides a number of tips on how to protect yourself from similar internet or email scams, including:

• Be cautious of unsolicited phone calls, e-mails, and mailings.
• Never give or send any sensitive information (including your date of birth, account numbers, or passwords), credit or debit card numbers, or money or other valuables to unverified people or businesses.
• Resist the pressure to act quickly.  Scammers create a false sense of urgency to lure people to immediate action.
• If you recognize a scam attempt, immediately end all communication with the perpetrator.

If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.

More information about the Department’s efforts to help older Americans is available at its Elder Justice Initiative webpage, which can be found at elderjustice.gov. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, at www.ovc.gov.

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