https://www.justice.gov/jm/jm-9-48000-computer-fraud
https://www.justice.gov/jm/jm-9-118000-ag-guidelines-seized-and-forfeited-property
https://www.justice.gov/jm/jm-9-50000-chip-guidance
https://www.justice.gov/jm/jm-9-90000-national-security
U.S. Attorneys News Keywords
https://www.justice.gov/usao/pressreleases
May 7, 2021
Brazilian National Sentenced for Racketeering and Robbery Conspiracies
Two South Jersey Men Charged with Making and Selling Homemade Handguns and Machine Guns
Acting U.S. Attorney Jon Ophardt Recognizes Service of Law Enforcement for National Police Week
Guatemalan Man Who Possessed a Fraudulent Social Security Card and a Fraudulent Permanent Resident Card Sentenced to Prison
KINNEAR MAN SENTENCED TO 42 MONTHS ON ASSAULT CHARGE
St. Thomas Man Convicted of Felon in Possession of a Firearm
Guatemalan Man Sentenced to Prison for Illegally Reentering the United States After Being Deported
Heroin User Sentenced to Federal Prison for Possessing a Gun
Cleveland man found guilty in plot to ambush and kidnap law enforcement officers
Jury Convicts Iranian National for Illegally Exporting Military Sensitive Items
Wesley Chapel Man Indicted For Enticing A Minor Child To Engage In Sexual Activity
White Earth Man Pleads Guilty To Possession With Intent To Distribute Methamphetamine
California money launderer for Mexican drug cartel sentenced to nearly 5 years in prison
FCI Hazelton Inmate sentenced for assault and contraband charges
EDVA Commemorates Asian American and Pacific Islander Heritage Month
Worcester Man Indicted for Firearm and Ammunition Offense
Springfield Woman Sentenced for Tax Fraud Conspiracy
Former Client Relationship Manager at Bank of America Sentenced for Embezzling from Client Company
Convicted felon admits threatening to kill a witness and a federal judge
Tractor Trailer Driver Charged with Human Smuggling
Jury Convicts Iranian National for Illegally Exporting Military Sensitive Items
Estill County Man Convicted of Methamphetamine Trafficking and Illegal Firearm Possession
Former Montgomery County Teacher Charged in Superseding Indictment with Traveling to the Philippines to Have Sex with Children
NDTX Round Up: April 30 – May 6
Nineteen Brazilian Nationals Charged in Nationwide Conspiracy to Open Fraudulent Driver Accounts at Leading Rideshare and Delivery Service Companies
May 7, 2021
Estill County Man Convicted of Methamphetamine Trafficking and Illegal Firearm Possession
Former Montgomery County Teacher Charged in Superseding Indictment with Traveling to the Philippines to Have Sex with Children
NDTX Round Up: April 30 – May 6
Nineteen Brazilian Nationals Charged in Nationwide Conspiracy to Open Fraudulent Driver Accounts at Leading Rideshare and Delivery Service Companies
Florida Resident Sentenced for Misbranding and Money Laundering Conspiracies Involving Online Sale and Distribution of Unapproved Drug Obtained from Overseas
Irvine Man Arrested on Federal Grand Jury Indictment Alleging He Fraudulently Obtained $5 Million in COVID-Relief PPP Loans
Serial Bank Robber Sentenced in Maryland to More Than 12 Years in Federal Prison
San Angelo Tax Preparers Charged With Scamming IRS
Informational: Federal Court arraignments
Four Individuals Plead Guilty to RICO Conspiracy Involving “Bulletproof Hosting” for Cybercriminals
New York Hedge Fund Founder Sentenced For Bankruptcy Fraud
Harrison Man Sentenced to 60 Months in Federal Prison for Setting Fire in the Buffalo National River
Acting U.S. Attorney M. Rhett DeHart Recognizes National Police Week and Honors Officers Lost in Past Year
Member of White Supremacist Gang Pleads Guilty to Violent Assault and Conspiracy to Sell Firearms
Man from Nambe sentenced to 15 years in federal prison for sexual abuse in Indian County
Florida Man Sentenced to Prison After Traveling to Edwardsville to Cash Counterfeit Checks Using Stolen Identities
Charlotte Man Is Sentenced To 11+ Years For The Attempted Armed Robbery Of A Convenience Store
Physician Indicted in $6 Million Medicare Fraud Scheme
Williamsburg Wellness Center Owner Indicted for $2 Million Health Care Fraud
Man Indicted for Shooting Gun on Federal Property During the May 2020 Protest
Four Former Minneapolis Police Officers Indicted On Federal Civil Rights Charges For Death Of George Floyd; Derek Chauvin Also Charged In A Separate Indictment For Violating Civil Rights Of A Juvenile
Railroad Inspector Charged With Lying About Inspections
Doctor Charged with Illegally Distributing Opioids, Defrauding Health Care Benefit Programs
Four Former Minneapolis Police Officers Indicted on Federal Civil Rights Charges for Death of George Floyd; Derek Chauvin Also Charged in Separate Indictment for Violating Civil Rights of a Juvenile
Twin Brothers Sentenced For Major Fraud Against The Government
>Four Individuals Plead Guilty to RICO Conspiracy Involving “Bulletproof Hosting” for Cybercriminals
Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Friday, May 7, 2021
Four Eastern European nationals have pleaded guilty to conspiring to engage in a Racketeer Influenced Corrupt Organization (RICO) arising from their providing “bulletproof hosting” services between 2008 and 2015, which were used by cybercriminals to distribute malware and attack financial institutions and victims throughout the United States.
According to court documents, Aleksandr Grichishkin, 34, and Andrei Skvortsov, 34, of Russia; Aleksandr Skorodumov, 33, of Lithuania; and Pavel Stassi, 30, of Estonia, were founders and/or members of a bulletproof hosting organization. The group rented Internet Protocol (IP) addresses, servers, and domains to cybercriminal clients, who used this technical infrastructure to disseminate malware used to gain access to victims’ computers, form botnets, and steal banking credentials for use in frauds. Malware hosted by the organization included Zeus, SpyEye, Citadel, and the Blackhole Exploit Kit, which rampantly attacked U.S. companies and financial institutions between 2009 and 2015 and caused or attempted to cause millions of dollars in losses to U.S. victims. A key service provided by the defendants was helping their clients to evade detection by law enforcement and continue their crimes uninterrupted; the defendants did so by monitoring sites used to blocklist technical infrastructure used for crime, moving “flagged” content to new infrastructure, and registering all such infrastructure under false or stolen identities.
“Every day, transnational organized cybercriminals deploy malware that ravages our economy and victimizes our citizens and businesses,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The criminal organizations that purposefully aid these actors — the so-called bulletproof hosters, money launderers, purveyors of stolen identity information, and the like — are no less responsible for the harms these malware campaigns cause, and we are committed to holding them accountable. Prosecutions like this one increase the costs and risks to cybercriminals and ensure that they cannot evade responsibility for the enormous injuries they cause to victims.”
“Fraud over the internet has had a major economic impact on our community, and all over our nation and the world,” stated Acting U.S. Attorney Saima S. Mohsin of the Eastern District of Michigan. “An essential part of reducing the fraud involves vigorously investigating and prosecuting individuals such as these ‘bulletproof hosters’ who enable the fraudsters in victimizing people over the internet.”
“Over the course of many years, the defendants facilitated the transnational criminal activity of a vast network of cybercriminals throughout the world by providing them a safe-haven to anonymize their criminal activity,” said Special Agent in Charge Timothy Waters of the FBI’s Detroit Field Office. “This resulted in millions of dollars of losses to U.S. victims. Today’s guilty plea sends a message to cybercriminals across the globe that they are not beyond the reach of the FBI and its international partners, and that anyone who facilitates or profits from criminal cyber activity will be brought to justice.”
According to court filings and statements made in connection with their guilty pleas, Grichishkin and Skvortsov were founding members of the organization and its proprietors. Skvortsov was responsible for marketing the organization’s criminal business and served as a point of contact for important and/or disgruntled clients, and Grichishkin was the organization’s day-to-day leader and oversaw its personnel. Skorodumov was one of the organization’s lead systems administrators, and at some points, its only systems administrator. In this role, he configured and managed the clients’ domains and IP addresses, provided technical assistance to help clients optimize their malware and botnets, and monitored and responded to abuse notices. Stassi undertook various administrative tasks for the organization, including conducting and tracking online marketing to the organization’s criminal clientele and using stolen and/or false personal information to register webhosting and financial accounts used by the organization.
Stassi, Skorodumov, and Grichishkin pleaded guilty in February and March 2021 to one count of RICO conspiracy. Skvortsov pleaded guilty today to the same charge. All four guilty pleas took place before Chief U.S. District Judge Denise Page Hood in the Eastern District of Michigan. Sentencing of Stassi, Skorodumov, Grichishkin, and Skvortsov has been set for June 3, June 29, July 8, and Sept. 16, respectively. Each defendant faces a maximum penalty of 20 years in prison.
>Jury Convicts Iranian National for Illegally Exporting Military Sensitive Items
U.S. Attorney’s Office
Western District of Texas
FOR IMMEDIATE RELEASE
Friday, May 7, 2021
Jury Convicts Iranian National for Illegally Exporting Military Sensitive Items
SAN ANTONIO – In San Antonio, a federal jury convicted Mehrdad Ansari, a 39-year-old Iranian citizen and a resident of the United Arab Emirates and Germany, for scheming to obtain military sensitive parts for Iran in violation of the Iranian Trade Embargo. These parts had dual-use military and civilian capability and could be used in such systems as nuclear weapons, missile guidance and development, secure tactical radio communications, offensive electronic warfare, military electronic countermeasures (radio jamming), and radar warning and surveillance systems.
The jury convicted Ansari of one count of conspiracy to violate the Iranian Transaction Regulations (ITR), one count of conspiracy to commit wire fraud, one count of conspiracy to defraud the U.S. Department of the Treasury and two counts of aiding and abetting the making of false statements. Evidence presented during trial revealed that Ansari attempted to transship cargo obtained from the U.S. by co-defendants Taiwanese citizen Susan Yip, aka Susan Yeh, and Iranian citizen Mehrdad Foomanie, aka Frank Foomanie, using Ansari’s companies, Gulf Gate Sea Cargo L.L.C. and Global Merchant L.L.C., located in Dubai, United Arab Emirates.
From October 9, 2007, to June 15, 2011, primarily Yip and Foomanie obtained or attempted to obtain from companies worldwide over 105,000 parts valued at approximately $2,630,800 involving more than 1,250 transactions. The defendants conducted 599 transactions with 63 different U.S. companies in which they obtained or attempted to obtain parts from U.S. companies without notifying the U.S. companies these parts were being shipped to Iran or getting the required U.S. government license to ship these parts to Iran.
At no time did Yip, Foomanie or Ansari, individually or through any of their companies, ever apply for or receive either a required U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) license or Department of Commerce export license to ship any item listed in this indictment to the Republic of Iran.
Iranian Transaction Regulations prohibit, among other things, the exportation, re-exportation, sale or supply, directly or indirectly, to Iran or the Government of Iran, of any goods, technology or services from the U.S. or by a U.S. person. The embargo also prohibits any transaction by any U.S. person or within the U.S. that evades or avoids, or has the purpose of evading or avoiding, any prohibition set forth in the Executive Orders.
John C. Demers, Assistant Attorney General for National Security; U.S. Attorney Ashley C. Hoff; FBI San Antonio Division Special Agent in Charge Christopher Combs; Homeland Security Investigations (HSI) Acting Special Agent in Charge Craig Larrabee; Defense Criminal Investigative Service (DCIS) Southwest Field Office Special Agent in Charge Michael Mentalvos; and Acting Special Agent in Charge John Ruiz, U.S. Commerce Department’s Bureau of Industry and Security’s Office of Export Enforcement, Dallas Field Office, made today’s announcement.
Ansari faces up to 20 years in federal prison for conspiracy to violate Iranian Trade Regulations; up to five years for conspiracy to commit wire fraud; up to five years for conspiracy to defraud the U.S. Department of the Treasury; and up to five years on each count of aiding and abetting the making of false statements. Sentencing is scheduled for September 1, 2021.
In October 2012, Yip was sentenced to two years in federal prison after pleading guilty to conspiring to violate the ITR by acting as a broker and conduit for Foomanie to buy items in the U.S. and have them unlawfully shipped to Iran. Mehrdad Foomanie remains a fugitive.
FBI, HSI, the Department of Commerce, Bureau of Industry and Security and the Defense Criminal Investigative Service investigated this case. Assistant U.S. Attorneys Mark Roomberg, William R. Harris and Kelly Stephenson are prosecuting this case.
> Former Deputy Campaign Manager Pleads Guilty to Theft of Campaign Funds
Office of Public Affairs
FOR IMMEDIATE RELEASE
Friday, May 7, 2021
Former Deputy Campaign Manager Pleads Guilty to Theft of Campaign Funds
An Illinois man pleaded guilty today to the theft of more than $115,000 in campaign funds from the McSally for Senate Campaign in 2018 and 2019.
According to court documents, Anthony Barry, 33, of Yorkville, served as a deputy campaign manager and consultant for former U.S. Senator Martha McSally. Barry used his position in the campaign to fraudulently direct the campaign to make payments to him beyond what he was owed for his salary and had the fraudulently obtained funds deposited into his personal bank account.
Barry pleaded guilty to an information charging him with one count of unlawful conversion of campaign funds. He is scheduled to be sentenced on July 6, and faces a maximum term of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Glenn B. McCormick for the District of Arizona; and Assistant Director in Charge Steven M. D’Antuono of FBI’s Washington Field Office made the announcement.
The FBI’s Washington Field Office is investigating the case.
Trial Attorneys Rosaleen O’Gara and Nicole Lockhart of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney William Voit of the District of Arizona are prosecuting the case.
>Irvine Man Arrested on Federal Grand Jury Indictment Alleging He Fraudulently Obtained $5 Million in COVID-Relief PPP Loans
U.S. Attorney’s Office
Central District of California
FOR IMMEDIATE RELEASE
Friday, May 7, 2021
Irvine Man Arrested on Federal Grand Jury Indictment Alleging He Fraudulently Obtained $5 Million in COVID-Relief PPP Loans
SANTA ANA, California – An Orange County man was arrested today on federal charges alleging he fraudulently obtained approximately $5 million in Payment Protection Program (PPP) loans for his sham businesses, then used the money on himself, including purchasing Ferrari, Bentley and Lamborghini sports cars.
Mustafa Qadiri, 38, of Irvine, was named in a federal grand jury indictment returned Wednesday charging him with four counts of bank fraud, four counts of wire fraud, one count of aggravated identity theft, and six counts of money laundering.
Qadiri surrendered to law enforcement this morning and is expected to make his initial appearance this afternoon in United States District Court in Santa Ana.
According to the indictment, Qadiri claimed to have operated four Newport Beach-based companies, none of which are currently in operation: All American Lending, Inc., All American Capital Holdings, Inc., RadMediaLab, Inc., and Ad Blot, Inc.
In May and June of 2020, Qadiri allegedly submitted false and fraudulent PPP loan applications to three banks on behalf of those companies. The false information allegedly included the number of employees to whom the companies paid wages, altered bank account records with inflated balances, and fictitious quarterly federal tax return forms. Qadiri allegedly also used someone else’s name, Social Security number and signature to fraudulently apply for one of the loans.
Relying on this false information, the banks funded the PPP loan applications and transferred approximately $5 million to accounts Qadiri controlled, according to the indictment. Qadiri allegedly used the fraudulently obtained PPP loan proceeds for his own personal benefit, including for expenses prohibited under the requirements of the PPP program, such as the purchase of luxury vehicles, lavish vacations, and the payment of his personal expenses.
Federal agents have seized the Ferrari, Bentley and Lamborghini cars that Qadiri allegedly purchased with the fraudulently obtained PPP loans, along with $2 million in alleged ill-gotten gains from his bank account.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April, Congress authorized more than $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Homeland Security Investigations, the Small Business Administration Office of Inspector General, the FBI and IRS Criminal Investigation investigated this matter as part of the El Camino Real Financial Crimes Task Force.
Assistant United States Attorney Jennifer L. Waier of the Santa Ana Branch Office is prosecuting this case.
> Stamford Man Charged with Fraudulently Obtaining Nearly $2.9 Million in COVID-19 Relief Funds
U.S. Attorney’s Office
District of Connecticut
FOR IMMEDIATE RELEASE
Friday, May 7, 2021
Stamford Man Charged with Fraudulently Obtaining Nearly $2.9 Million in COVID-19 Relief Funds
Moustapha Diakhate, 45, of Stamford, was arrested today on a federal criminal complaint charging him with bank fraud and wire fraud offenses related to his receipt of nearly $2.9 million in COVID-19 relief funds guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Today’s announcement was made by Acting U.S. Attorney Leonard C Boyle, Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector General’s Eastern Region, Special Agent in Charge David Sundberg of the New Haven Division of the Federal Bureau of Investigation, and Acting Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation in New England.
Diakhate appeared this afternoon before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and was ordered detained.
In March 2020, the CARES Act provided emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program (PPP). In April 2020, Congress authorized more than $300 billion in additional PPP funding. The PPP allowed qualifying small businesses and other organizations to receive unsecured loans at an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent and utilities. The PPP allowed the interest and principal to be forgiven if businesses spent the proceeds on these expenses within a certain period of time of receipt and used at least a certain percentage of the amount to be forgiven for payroll.
The PPP was overseen by the Small Business Administration, which has authority over all PPP loans. Individual PPP loans, however, were issued by private approved lenders, such as Citibank, which received and processed PPP applications and supporting documentation, and then made loans using the lenders’ own funds, which were guaranteed by the SBA.
As alleged in the criminal complaint, Diakhate maintained an ownership or management interest in certain small business entities, including Ansonia Developers LLC, Winsbay Inc., Buyers Association Group LLC, Washington Management LLC and Diakhate Capital, Inc. Beginning in May 2020, Diakhate provided Citibank with false and fraudulent information during the PPP loan application process in order to obtain PPP loans for each of his five entities totaling $2,897,100. Diakhate then used a portion of the funds for various personal expenses, including to pay off a loan he had been provided to purchase of a 2010 Porsche Panamera Turbo, and to purchase both a Mercedes and BMW. He also purchased a $50,000 certificate of deposit with PPP funds, and disbursed funds to various and individuals unrelated to his business entities.
“Congress authorized the Paycheck Protection Program to help small businesses and their employees withstand a devastating pandemic, not so individual recipients can illegally reap a financial windfall,” said Acting U.S. Attorney Leonard C Boyle. “The Justice Department and our federal law enforcement partners are actively working to identify those who are taking advantage of COVID relief programs to line their pockets in violation of the law, and we will ensure that wrongdoers are prosecuted in federal court.”
“Making false statements to fraudulently obtain PPP funds is unacceptable,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “SBA OIG will relentlessly pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”
>Wesley Chapel Man Indicted For Enticing A Minor Child To Engage In Sexual Activity
U.S. Attorney’s Office
Middle District of Florida
FOR IMMEDIATE RELEASE
Friday, May 7, 2021
Wesley Chapel Man Indicted For Enticing A Minor Child To Engage In Sexual Activity
Tampa, Florida – Acting United States Attorney Karin Hoppmann announces the return of an indictment charging Clayton Everett Colborn (29, Wesley Chapel), also known as Jason Rich, with enticement and coercion of a minor to engage in sexual activity. If convicted, Colborn faces a minimum mandatory penalty of 10 years, and up to life, in federal prison, and a potential life term of supervised release. The indictment also notifies Colborn that the United States intends to forfeit his electronic devices and his Chevrolet Corvette, items that Colborn had used in the commission of this offense.
According to the indictment, in or around January 2020 and continuing through February 3, 2020, Colborn knowingly persuaded, induced, enticed, and coerced an individual under the age of 16 year to engage in sexual activity.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Ocoee Police Department, and the Pasco Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Lisa M. Thelwell.
Anyone with information regarding Clayton Everett Colborn, also known as “Jason Rich,” should contact the Tampa Division of the Federal Bureau of Investigation at 813-253-1000.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
>Nineteen Brazilian Nationals Charged in Nationwide Conspiracy to Open Fraudulent Driver Accounts at Leading Rideshare and Delivery Service Companies
U.S. Attorney’s Office
District of Massachusetts
FOR IMMEDIATE RELEASE
Friday, May 7, 2021
Nineteen Brazilian Nationals Charged in Nationwide Conspiracy to Open Fraudulent Driver Accounts at Leading Rideshare and Delivery Service Companies
Scheme involved use of more than 2,000 stolen identities
BOSTON – Nineteen Brazilian nationals were charged today with engaging in a nationwide conspiracy to set up fraudulent driver accounts with multiple rideshare and delivery service companies using stolen identities, and to rent or sell those accounts to drivers who might not otherwise qualify to drive for those services.
The alleged scheme also involved using the fraudulent accounts to exploit the company’s referral bonus programs, and using automated “bots” and GPS spoofing technology to increase the income earned from the fraudulent driver accounts. The government estimates that more than 2,000 victims’ identities were stolen and used as part of the scheme.
“The scheme alleged in today’s charges was extensive, violated customers’ privacy, and enabled unqualified drivers to work for rideshare and food delivery services,” said Acting U.S. Attorney Nathaniel R. Mendell. “Millions of us rely on these services every day for transportation and to have meals and groceries delivered to our homes. They are an important part of the economy, especially now. We allege that the conspirators took advantage of that by stealing customers’ identities while making deliveries and using those stolen identities to set up fraudulent accounts. That means accounts for unqualified drivers who could not meet minimum qualifications, were not eligible to work in the United States, or could not pass a background check. That’s illegal. I encourage individuals who believe they may be a victim of this fraud to contact my Office.”
“These individuals are accused of executing a nationwide con in which they dragged thousands of innocent people into their scheme by stealing their identities. They thought it would be an easy way to generate some quick money, but in doing so they potentially compromised public safety by putting people behind the wheel who couldn’t get jobs with these companies on their own,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This massive fraud ring would have been more difficult to detect without the assistance of the victim companies in this case who are making a good faith effort to root out fraud and enhance their customers’ safety.”
The complaint alleges that beginning by at least January 2019, and continuing through at least April 2021, the defendants conspired with each other and with additional conspirators to defraud at least five different rideshare and delivery companies. The scheme involved obtaining images of victims’ driver’s licenses and Social Security numbers, creating fraudulent driver accounts using these identifiers, and renting or selling those accounts. Generally the accounts were rented or sold to individuals who did not otherwise qualify to drive for the rideshare and delivery services because they did not meet minimum qualifications, were not eligible to work in the United States, or could not pass a background check.
The conspirators allegedly coordinated with each other on the prices they charged drivers to use the fraudulent accounts, and shared tips with each other on how to circumvent the companies’ fraud detection systems. The conspirators are also alleged to have fraudulently obtained referral bonuses from the companies by creating fraudulent driver accounts for the sole purpose of referring other fraudulent driver accounts. The conspirators allegedly used “bots” and GPS spoofing technology to exploit the rideshare and delivery companies’ systems. A “bot” is a software application that runs automated tasks over the Internet. GPS spoofing technology allows a user to fake the user’s location.
As a result of the scheme, Internal Revenue Service Forms 1099 were generated in victims’ names for income the conspirators earned from the rideshare and delivery companies.