Charlotte Man Indicted For International Multi-Million Dollar Tech Support Fraud Scam

CHARLOTTE, N.C. – Nachiket Banwari, 34, of Charlotte, was indicted by a federal grand jury for conspiracy to commit mail fraud, wire fraud, and money laundering, for his involvement in an international multi-million dollar tech support fraud scam, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The federal indictment was unsealed today, following Banwari’s initial appearance in federal court.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.

According to allegations in the indictment, Banwari was part of a conspiracy with other individuals that carried out an international internet technical support fraud scam, through his management of Capstone Technologies LLC (Capstone), a company headquartered in Charlotte that claimed to provide computer-related services to its customers. Capstone allegedly conducted business using several different aliases, including Authenza Solutions LLC, MS-Squad Technologies, MS-Squad.com, MS Infotech, United Technologies, and Reventus Technologies.

According to allegations in the indictment, fraudulent internet pop-up “ads” were a central part of the conspiracy’s tech support scam. It is alleged that the fraudulent pop-ups suddenly appeared on victims’ computers freezing their screens and containing misrepresentations designed to trick the victims into believing their computer needed technical support to fix a problem, prompting victims to contact Capstone at a number shown on the pop-ups. When victims called Capstone’s India-based call center for assistance, the indictment alleges that victims were tricked into purchasing unnecessary technical support services from Capstone. The indictment further alleges that the conspirators defrauded thousands of victims throughout the United States, some of whom were elderly, of more than $7 million.

According to allegations in the indictment, Banwari agreed to obtain payment-processing services in his name on behalf of Capstone, in order to process victims’ payments to the conspirators, and laundered the proceeds domestically and internationally to bank accounts located in India. For his participation in the scheme, Banwari allegedly received three percent of the Capstone revenue.

The indictment also contains a notice of forfeiture, which gives notice that the defendant must forfeit to the United States all of the property, currency and monetary instruments involved in the offenses charged in the indictment. The government will pursue a forfeiture money judgment in the amount of at least $211,000, which the government contends constitutes the proceeds of the violations alleged in the charging document.

Banwari remains in federal custody. The mail fraud and wire fraud conspiracy charge and the money laundering conspiracy charge each carry a maximum prison term of 20 years.

The charges against Banwari are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.

The FBI conducted the investigation.

Assistant U.S. Attorney Matthew Warren of the U.S. Attorney’s Office in Charlotte is prosecuting the case.