Leader of International Robocall Scam Sentenced for Defrauding Over 4,000 U.S. Victims Out of More Than $10 Million

Department of Justice

U.S. Attorney’s Office

Eastern District of Virginia

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FOR IMMEDIATE RELEASE

Thursday, September 16, 2021

Leader of International Robocall Scam Sentenced for Defrauding Over 4,000 U.S. Victims Out of More Than $10 Million

RICHMOND, Va. – An Indian national was sentenced today to 22 years in prison for conspiracy and identity theft in connection with his operation of an overseas robocall scam that defrauded thousands of victims out of more than $10 million.

“This defendant has been sentenced to 22 years in prison for being the mastermind and leader of an extensive multimillion-dollar robocall scheme that, from overseas, exploited over 4,000 American victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The impact of the harm inflicted on the victims of these robocall schemes can be devastating. The victims, many of whom are elderly, continue to endure significant financial hardship from the defendant’s vast fraud enterprise. The defendant operated and supervised the call center, was the ‘closer’ when speaking to victims, and managed the money couriers who illegally sent millions of stolen and hard-earned funds belonging to the victims back to his call center. When you consider the sheer number of victims this defendant extorted and the magnitude of their losses, the scale of harm and pain he caused is enormous. As this case demonstrates, we will continue to work closely with our partners to investigate, apprehend, and prosecute transnational criminal enterprises that steal from vulnerable American victims, and will bring the perpetrators of these scams to justice no matter where they are located.”

According to court documents, Shehzadkhan Pathan, 40, operated a call center in Ahmedabad, India, from which automated robocalls were made to victims in the United States. After establishing contact with victims through these automated calls, Pathan and other “closers” at his call center would coerce, cajole, and trick victims into sending bulk cash through physical shipments and electronic money transfers. Pathan and his conspirators used a variety of schemes to convince victims to send money, including impersonating law enforcement officers from the Federal Bureau of Investigation (FBI) and Drug Enforcement Administration (DEA) and representatives of other government agencies, such as the Social Security Administration, to threaten victims with severe legal and financial consequences. Conspirators also convinced victims to send money as initial installments for falsely promised loans.

“Fraud targeting the elderly has a uniquely harmful effect on a segment of the population that is often amongst society's most vulnerable. This conspiracy, which defrauded over 4,000 victims, many of whom were elderly, out of at least $10 million, is again an unfortunate reminder of the type of devastation these fraud schemes can wreak,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal/Cyber Division. “Pathan, a leader of this scheme, which relied on impersonating law enforcement to threaten victims, is the 4th individual sentenced in this investigation and represents a step forward in our efforts to hold those who engage in these scams accountable to the fullest extent of the law. The FBI's work in this area is far from over as we remain steadfast in our commitment to relentlessly pursue these types of investigations to ensure the protection of the hard-earned livelihood of our nation's elderly.”

In addition to operating the call center, Pathan recruited and supervised a multitude of money couriers, whom he directed to receive money sent by victims. Pathan’s network of money couriers was located in multiple states, including but not limited to Virginia, New Jersey, Minnesota, Texas, California, South Carolina, and Illinois. Pathan assigned various aliases to these individuals and supplied them with hundreds of counterfeit identification documents to facilitate their receipt of victim cash shipments and money transfers. Pathan then directed the couriers to send the money to himself and other conspirators through various means, including cash deposits into numerous bank accounts and via informal money transmitters known as Hawalas.

Pathan is the fourth of six defendants in this case to be sentenced for their role in the conspiracy. Co-defendants Pradipsinh Parmar, 41, and Sumer Patel, 38, both of Ahmedabad, India, acted as money couriers during the conspiracy, and are scheduled to be sentenced on September 20.    

Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.

Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.

The Eden Prairie, Minnesota, Police Department provided significant assistance with this investigation.

Assistant U.S. Attorneys Brian R. Hood and Kaitlin G. Cooke are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-160.

Source:

Leader of International Robocall Scam Sentenced for Defrauding Over 4,000 U.S. Victims Out of More Than $10 Million

8 years prison for Nevada woman for elder exploitation

CARSON CITY, Nev. (AP) — A 62-year-old northern Nevada woman has been sentenced to up to eight years in prison for guardianship abuse of her 93-year-old father.

Nevada Attorney General Adam Laxalt announced the sentencing Monday of Vicky Jo Adams of Douglas County for exploiting an older person and converting funds entrusted to her for her personal use between April and December 2017.

Prosecutors say she defrauded John Lindblade of more than $260,000.

In addition to sentencing Adams to 30 to 96 months in prison, Judge James Todd Russell ordered her to pay $264,000 in restitution.

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8 years prison for Nevada woman for elder exploitation

State attorney marshals a team to target exploitation of elderly

Alzheimer’s disease took its toll on Joseph Cavallaro.

He couldn’t keep himself fed and in 2010 was found wondering his West Palm Beach neighborhood several times. But just months earlier, the 81-year-old bought a $24,000 Harley Davidson Ultra motorcycle. The octogenarian also bought a Chevrolet Impala and a GMC pickup.

A fleet for a senior who lost his driver’s license for medical reasons in 2006.

Turned out the co-owner of these vehicles was Cavallaro’s live-in professional caregiver, Richard Okray. He had obtained Cavallaro’s power of attorney. Palm Beach County sheriff’s investigators discovered Okray defrauded the senior of more than $246,000.

“One of the big issues we are seeing is that people like to operate under the color of law,” said Palm Beach County State Attorney Dave Aronberg. “They say, ‘Oh, I have power of attorney or I have a guardianship.’”

It’s cases like these that led Aronberg in January to establish the Elder Affairs Task Force, tapping Chief Assistant Brian Fernandes to head it and assigning two go-get-‘em prosecutors from the white-collar crime unit to look into cases: Kathryn Perrin and Michael Rachel.

Scamming the elderly is as much a characteristic of Florida as the beach and alligators — and it is always a moving target for law enforcement.

Aronberg said he saw a need to coordinate law enforcement, government agencies and outreach groups to better recognize when a trusted relative or caretaker has their hand in the pocket of a senior.

Sheriff deputies got wind of Okray by happenstance when the caregiver was arrested for DUI and Cavallaro ended up alone and struggling at night, according to a sheriff investigator’s report. Okray is now at an upstate prison work camp serving nearly a three-year sentence for exploitation of an elderly person. Cavallaro died in November 2013.

So far there have been three task force meetings involving municipal police forces, the Florida Department of Children & Families, the Legal Aid Society and the Palm Beach County clerk’s auditor overseeing guardianship abuse.

When police learn about suspected exploitation of a senior, this type of fraud involves heavy lifting for municipal police and prosecutors, Aronberg said. Rooting out criminality is a time-consuming task of compiling bank statements and other documents and interviewing the victim suffering from dementia and family members often at cross-purposes.

Mitchell Kitroser, a North Palm Beach attorney specializing in elder law, describes such cases as a “nightmare” for police investigators, especially when the suspect is the grown child of the senior.
Investigators must determine whether the senior is operating out of kindness of heart or under undue influence.

“It is a blurry line. It is very hard for law enforcement under those circumstances,” he said. “But if you don’t prosecute them you are leaving the elderly vulnerable in the community. You have to prosecute the ones you know about so you can deter people from doing it. Otherwise, it is open season on the elderly.”

Perrin said seniors are sometimes reluctant to report financial abuse to police or prosecutors. “A lot of times we don’t see these cases because they don’t want to be embarrassed,” she said.

Seniors targeted often are of the Greatest Generation who are isolated after a spouse dies and whose children live out of state. They are more trusting than their children and grandchildren of authority figures, including caregivers, guardians or seemingly well-intentioned relatives.

A good example, she said, was last year’s conviction of Boynton Beach caregiver Sultane Valcius, who received a 10-year prison sentence for bilking senior Maxwell Stander of $1.4 million in written checks over five years, investigators found. The 95-year-old described Valcius to sheriff’s deputies as “a member of his family” and thought he was helping her pay for schooling and investment properties. When police listened in on his calls to Valcius, the caregiver insisted she was destitute and asked for even more money.

Perrin and Rachel, the prosecutors on the task force, also have been out in the community sounding the alert. Perrin spoke in October to the South Palm Beach County Bar Association, titling her speech: “When Worlds Collide: Criminal Prosecutions Overlapping with Estate and Guardianship Matters.”

Judges appoint relatives or professionals as guardians to handle the affairs of incapacitated seniors. The task force came online as lawmakers in Tallahassee cracked down on reports of unethical court-appointed professional guardians by establishing the state’s first regulatory authority over the industry.

In Palm Beach County, Clerk & Comptroller Sharon Bock set up a guardianship hotline in 2011, leading to 900 cases investigated and discovery of more than $4.5 million in unsubstantiated disbursements, missing assets and fraud.

Chief Circuit Judge Jeffrey Colbath also announced reforms in February following The Palm Beach Post’s investigation, Guardianships: A Broken Trust, that discovered cronyism and nepotism involving Circuit Judge Martin Colin and his wife, Elizabeth “Betsy” Savitt, a professional guardian who has taken tens of thousands of dollars in fees from guardianship accounts without prior court approval.

Colbath transferred Colin out of the Probate & Guardianship Division and moved his wife’s cases away from south county judges to halt any appearance of favoritism. Colbath also said he planned to have professional guardians randomly assigned to cases, standardize their billing practices and have probate judges and their staff undergo in-house training.

Perrin said she is passionate about protecting the elderly. She came to the State Attorney’s Office about six years ago after spending time in a lucrative private practice because she found public service more rewarding. She said seniors are easy prey for criminals at a time in life when they are in the most need for respect and understanding.

“It’s heart-wrenching what happens,” she said. “I think we all deserve some dignity.”

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State attorney marshals a team to target exploitation of elderly

Mequon attorney indicted for allegedly defrauding banks and clients out of millions

MEQUON - A Milwaukee-area attorney has been charged in federal court with defrauding financial institutions and clients, money laundering, and filing a false tax return.

A federal grand jury returned a 33-count indictment Tuesday charging 35-year-old Sarah E.K. Laux, also known as Sarah Kitze, of Mequon with two counts of bank fraud, nine counts of wire fraud, one count of mail fraud, 20 counts of money laundering, and one count of filing a false tax return.

The indictment charges Laux with defrauding four different clients to whom Laux provided trust and estates advice. Laux gained access to client funds through her solo-practice law firm. According to the indictment, Laux defrauded those clients out of more than $2.2 million in funds that Laux then converted to her own use.

According to court documents, between 2010 and 2012, Laux engaged in a scheme to defraud Carleen Vogel Guenther and her family's corporation, Eilcar Corporation, by gaining access to their money. Laux allegedly converted more than $1.6 million of their money to her own use. The indictment alleges that Laux used that money to buy residential property and an insurance business and also used the money to pay her personal bills and bills of her law firm, Laux Law, LLC.

Laux is also accused of defrauding Associated Bank, N.A., and its subsidiary Associated Trust, N.A., which served as trustee of a trust of which Carleen Guenther was a beneficiary. Laux allegedly told the institutions that Carleen Guenther needed funds from the trust to buy a condominium in a retirement home. The bank distributed the $450,000 for that purpose and Laux is accused of converting the $450,000 to her own use. 

In 2013, Laux allegedly defrauded two other estate-planning clients, a husband and wife, by embezzling approximately $584,000 of their investment monies after having promised to use their money to buy annuities.

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Mequon attorney indicted for allegedly defrauding banks and clients out of millions