The Massachusetts Department of Justice has announced that thirteen people have been charged in connection with a transnational elder fraud scheme that allegedly involved a “call center” operation in the Dominican Republic that misled hundreds of elderly victims in the United States into believing that their grandchildren or other close family members were in trouble and required money. The investigation found over 400 victims, with an average age of 84, including at least 50 in Massachusetts, and over $5 million in.
According to the charging documents, the defendants, led by defendant Oscar Manuel Castanos Garcia, operated a sophisticated “call center” operation in the Dominican Republic, duping hundreds of elderly victims in the United States into believing that their grandchildren and other close family members were in trouble and needed money. After obtaining the money, the defendants allegedly laundered it back to the Dominican Republic.
Castanos Garcia allegedly operated call centers in the Dominican Republic, where he hired co-conspirators who knew English and engaged in what are known as “grandparent scams.” These scams would begin with an “opener” employee calling victims and claiming to be a grandson or granddaughter who had been in an accident. Then, a “Closer” allegedly followed up with another call, pretending to be their grandchild’s attorney and requesting payment for their grandchild’s accident-related bills. Castanos Garcia allegedly managed these call center facilities with the assistance of multiple supervisors who allegedly supervised, directed, and compensated the personnel.
According to the indictment, callers from Castanos Garcia’s call centers would tell elderly victims to provide cash to “runners” in the United States. Typically, the callers would urge victims to send the packages containing cash to rideshare drivers who had been directed to the victim’s home by a runner. The runners would then have unsuspecting rideshare drivers transport the goods to them in adjacent areas. In several cases, the callers directed the victims to send cash gifts to certain places via mail or commercial carriers.
The contact center allegedly called victims several times to request further payments for their grandchildren. Callers, for example, allegedly claimed that there had been a “mix-up” or that a “pregnant woman’s baby was lost in the crash.”
Co-conspirators allegedly directed unknowing rideshare drivers to drive elderly victims to the bank to withdraw further money.
It is also alleged that, under the command of Castanos Garcia and others, the runners would conduct financial operations with the victims’ money, such as depositing cash into bank accounts and transporting it to co-conspirators in New York and abroad. The scheme’s operators used money launderers in both the United States and the Dominican Republic to transfer proceeds from victims in the United States to Castanos Garcia and others in the Dominican Republic.
Members of the public who feel they have been victims of this case or other elder fraud scams may email [email protected] or call 1-800-CALL-FBI (1-800-225-5324). Suspected fraud can be reported to the FBI’s IC3 Elder Fraud Complaint Center.
The charge of Conspiracy to Commit Mail and Wire Fraud has a maximum term of 20 years in prison, three years of supervised release, and a fine of up to $250,000, or twice the victim’s loss. The charge of money laundering conspiracy carries up to 20 years in jail, three years of supervised release, and a fine of up to $500,000 or double the amount of laundered monies, whichever is higher. A federal district court judge imposes sentences based on the United States Sentencing Guidelines and the legislation that governs sentence determination in criminal cases.
United States Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Division, made the news today. The Justice Department’s Office of International Affairs, the Dominican National Police, División Especial de Investigación del Crimen Organizado Internacional (DEICROI), Central de Investigaciones Criminales (DICRIM), and the Ministerio Publico all gave valuable support. David M. Holcomb, an Assistant United States Attorney in the Criminal Division, is prosecuting the case.
The details in the charge filings are allegations. The defendants are deemed innocent unless and until they are proven guilty beyond a reasonable doubt in court.
Leave a Comment