New Mexico Man is the Fifth Defendant Sentenced in a Grandparent Scam that Targeted Kentucky Victims and Others

For Immediate Release

U.S. Attorney's Office, Western District of Kentucky

Louisville, KY – A New Mexico man was sentenced last week to 1 year and 6 months in federal prison for his role in a sweeping “grandparent scam” that targeted victims in Kentucky and across the United States through Canadian-based call centers.

U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Karen Wingerd, Special Agent in Charge, Cincinnati Field Office, IRS Criminal Investigation, and Special Agent in Charge Robert Holman of the United States Secret Service made the announcement.

According to court documents, callers would convince senior victims that their grandchild or other family member had an emergency, usually a car accident, and urgently needed money from the victim. Co-conspirators posing as “couriers” would then collect cash from victims at home and others would launder the criminal proceeds, both through traditional banks and cryptocurrency exchanges. The charged wire fraud conspiracy and money laundering conspiracy spanned from August 2020 to May 2021 and impacted hundreds of victims across the United States—including in Kentucky—who lost over $3 million in total.

Robert Louis Sanchez, 57, of Albuquerque, New Mexico, was sentenced last week to 1 year and 6 months in prison, followed by 3 years of supervised release, after pleading guilty to wire fraud conspiracy in April, for his role both as a courier and sometimes as the “safehouse” who would guard cash that was taken from victims.  

Four other defendants have previously entered guilty pleas and have been sentenced in the case.

Jairo Ostia Roberts, 44, who traveled from Panama to the United States to act as a courier in the scheme, was sentenced on March 9, 2023, to 6 months in prison followed by 1 year of supervised release, for wire fraud conspiracy. Roberts was removed to Panama upon his release from U.S. Bureau of Prisons custody.

Panama Abel Diaz Adames, 39, who also traveled from Panama to the United States to act as a courier in the scheme, was sentenced on April 4, 2024, to 1 year and 4 months in prison, followed by 3 years of supervised release, for wire fraud conspiracy.

Christopher Courcoulacos, 46, a Canadian citizen who had been residing in Panama, was considered a “manager or supervisor” within the conspiracy, and was sentenced on November 9, 2023, to 6 years in prison, followed by 3 years of supervised release, for wire fraud conspiracy.

Mark Anthony Phillips, 44, of Ruskin, Florida, was sentenced on May 2, 2024, to 6 years in prison, followed by 3 years of supervised release, after pleading guilty to a money laundering conspiracy charged in the Western District of Kentucky, as well as pleading guilty to five additional money laundering counts, originally charged in the Western District of New York, which were transferred to Kentucky for guilty pleas and sentencing. 

There is no parole in the federal system.

This case was investigated by the IRS-CI and USSS with assistance from the Jefferson County Sheriff’s Office, the Federal Bureau of Investigation, Homeland Security Investigations, and the Treasury Inspector General for Tax Administration.

Assistant U.S. Attorney Corinne E. Keel prosecuted the case.

This case was investigated and prosecuted as part of the National Elder Justice Task Force and the Kentucky Elder Justice Task Force. The Department of Justice’s mission of its Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. Kentucky’s task force is comprised of investigators, prosecutors, and others at the local, state, and federal level with a common objective of protecting seniors across Kentucky.

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Updated July 2, 2024

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New Mexico Man is the Fifth Defendant Sentenced in a Grandparent Scam that Targeted Kentucky Victims and Others

Editorial: Targeting seniors

This is what The Boston Globe had to say about scammers who target elders:

Making banks and brokers partners in the effort will help.

The fact pattern is now so well established that it’s referred to as the “grandparent scam.”

Someone purporting to be the grandchild in trouble calls granny needing bail money or money for a lawyer, who then gets on the phone to confirm the “crisis.” Grandma rushes off to the bank to get the required cash, packs it up as told to hand to a courier or Uber driver sent to pick it up. Then it’s usually gone forever.

A 93-year-old Pembroke grandmother is among those who have fallen for such a scam. But she has plenty of company here and around the country. Online and digital scammers cost Americans $10 billion last year, according to the FBI — about $3 billion of that was lost by seniors.

And only 1 in 44 incidents of elder financial exploitation is reported, according to the National Adult Protective Services Association.

Seniors are often too embarrassed to tell even family members that they have been scammed.

“It’s a frequent enough problem that we really need to do something about it,” Secretary of State Bill Galvin told the editorial board. “The sophistication of the scammers has increased. And if an electronic transfer is used, once that money disappears, it’s gone.”

And so Galvin has filed a bill designed to put the brakes on a transaction if a bank teller, broker, or financial adviser suspects that an elder (defined as 60 and older) or disabled adult client is in danger of being exploited. It allows financial institutions to delay a disbursement and notify a relevant adult protective services agency and the secretary’s office if there is “reasonable cause” to believe financial exploitation has occurred or is being attempted.

“By and large these people (who are being scammed) are competent,” Galvin said. “But they need a little time, a little breathing room to reconsider.”

That’s Galvin’s aim with the bill — slow down the process that scammers have counted on to push panicked elders into making hasty decisions. The proposed state legislation pairs nicely with an ongoing federal effort — under the 2018 Senior Safe Act — that offers bank and financial services employees training on spotting potential victims and immunity when they report such incidents to authorities.

Galvin’s bill, filed in conjunction with Senator Paul Feeney and Representative James M. Murphy, co-chairs of the Joint Committee on Financial Services, would also provide immunity from civil liability for those bank employees trying to do the right thing.

Now, not all scammers are strangers. It’s not uncommon to have family members attempt to exploit elders, and a few of those cases have been reported to Galvin’s office by brokers and financial advisers. In fact, according to a 2019 study by the Consumer Financial Protection Bureau, “losses were greater when the older adult knew the suspect.”

Galvin’s bill deals with that possibility as well, including a provision designed to make sure that relatives or other third parties who might actually be engaged in the exploitation of elders themselves aren’t notified of a bank’s suspicions.

Federal efforts, including those of the Justice Department, have been largely aimed at spreading the word, educating people about each new scheme as it picks up speed. But for many that will come too late. States are now trying to close that gap — to take the more proactive slow-it-down approach.

A bill backed by Secretary of State Brad Raffensperger of Georgia and passed unanimously by both branches of the Georgia Legislature took exactly that approach. The Senior Protections from Exploitation Against Retirees Act was signed into law by Governor Brian Kemp in May.

Earlier this month, Connecticut Governor Ned Lamont signed a bill to give financial institutions the ability to suspend disbursements for up to 45 days if the exploitation of an elder is suspected. (The Massachusetts bill’s holds would expire after 15 days.) The Connecticut bill goes into effect July 2024. It, too, passed unanimously in both legislative branches.

Now Georgia, where Republicans hold both branches of the Legislature and the governorship, and Connecticut, where Democrats hold all three, would seem to have little in common — except perhaps their common-sense approach to doing the right thing by seniors — preventing their exploitation before it robs them of their savings.

The Galvin-Feeney-Murphy bill is all about doing the right thing by seniors here in Massachusetts. If Georgia and Connecticut can get it done, we can too.

Full Article & Source:
Editorial: Targeting seniors

Two charged in ‘grandparent scam’

CLEVELAND — Two Tampa, Fla. men are charged in a nine-count federal indictment involving the scamming of elderly people throughout the Northern Ohio district.

John Tyler Pla, 25, and Johnny Lee Palmer, 25, both of Tampa, are charged with conspiracy to commit wire fraud and wire fraud, according to U.S. Attorney Justin Herdman. A federal grand jury sitting in Toledo returned the indictments.

“Protecting our district’s elderly and vulnerable populations from scammers and fraudsters is an important part of the work we do every day at the Justice Department,” Herdman said. “Manipulating and exploiting our district’s elderly in any way, for any reason, will be met with swift prosecution.”

FBI Special Agent Eric B. Smith said his unit is increasingly watching over the elderly to prevent scams.

“The FBI encourages everyone to educate their elderly family and friends on financial scams such as this,” Smith said, referring to the case against the Florida men. “These two fraudsters played on the heart-strings of grandparents. Discussions prior to receiving a possible phone call from scammers can prevent your loved one from being a victim.”

According to the indictment, from July 20 to Aug. 28 this year, the defendants are accused of conspiring together to orchestrate a “grandparent scam” on elderly victims in Brecksville, Parma, Gates Mills, Lorain, Mansfield, Fairview Park, Westlake and Mentor.

To conduct their alleged scheme, the defendants are accused of calling elderly victims in these areas claiming to be a relative — such as a grandson, granddaughter, or an attorney for the relative — and informing the elderly victim that he or she had been arrested and needed money for bail.

The indictment states that the conspirators would then arrange for a purported courier to pick up the money in person. The defendants would then rent a U-Haul vehicle and travel to the victims’ residence to collect the money in person. In total, the victims suffered a combined loss of $383,932.

The investigation preceding the indictment was conducted by the Cleveland Division of the FBI and Westlake Police Department. This case is being prosecuted by Assistant U.S. Attorney Brian McDonough.

According to Herdman, this case is part of the Justice Department’s 2020 national Money Mule initiative. The Money Mule initiative seeks to stop the financial exploitation of the nation’s elderly and vulnerable populations.

Since President Donald Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors.

In particular, in March, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep.

Full Article & Source:

Two charged in ‘grandparent scam’

Camera captures thief stealing $10,000 from woman in grandparent scam

By Carter Evans

Click to Watch Video

Glendale, California — There's a new warning about deceptive thieves, robbing elderly victims on their own doorsteps. Video from a Ring doorbell captured a scam artist in action, taking $10,000 from Barbara McCullough. It started with a call from someone claiming to be her grandson.

"I said to him him, 'It doesn't sound like you.' He said 'I have a horrible cold,' and then he started crying," McCullough said.

The caller said he needed bail money fast.

"I went down to the bank and withdrew $10,000," McCullough said.

What's unusual is the scammer was caught on camera. Grandparent scams are one of the fastest growing crimes and they all begin with a cry for help. Nationwide, seniors are cheated out of nearly $3 billion a year, according to the U.S. Senate Special Committee on Aging.

"I've heard upwards of $10 billion every single year because a lot of these crimes aren't reported. Because a lot of times, they're very ashamed," said Sgt. Dan Suttles.

A former conman in federal custody provided chilling details about his scam to CBS News in an interview in 2014.

"Once you get them emotionally involved, then they'll do anything for you," he said.

As for McCullough, she said she heard someone calling and felt "flattered" that he called her.

"He didn't want to upset his parents. That's what I thought," she said.

Detectives are trying to track down that scam artist. Officials said seniors can verify who is calling by asking a personal question only the family member would know and by making a call to a relative before handing over any money.

Full Article & Source:
Camera captures thief stealing $10,000 from woman in grandparent scam

Siouxland officials say senior-targeted scams ramp up for holidays

Caregivers of elderly Americans need help and support, too.

SIOUX CITY -- If you're feeling generous this holiday season, particularly if you're a senior, you need to be wary of scammers who are looking to take advantage of that giving spirit.

According to the Consumer Financial Protection Bureau, older Americans lose between $2.9 and $36.5 billion annually to financial exploitation.

"They're very trusting and they want to help others -- scammers recognize that," said Tasha Jones, an elder rights specialist for Connections Area Agency on Aging, who will lead a discussion about scams at the Morningside Branch Library on Dec. 10. "Elders also don't question when people are asking for help. They just give in."

Jones said seniors are often reluctant to tell family members that they've been roped into a scam because they fear it appears as if they can no longer manage their finances.

"They're scared that their family may have them go to a facility sooner or they may lose their independence," she said.

Grandparent scam

The phone rings. The caller on the other end says, "Hi grandma, It's your favorite grandson."

The elderly woman responds, "Oh, Hi, Timmy."

The scammer posing as Timmy relays that he was traveling for school and, unfortunately, ran into some trouble with the law. Now, Timmy is locked up. He desperately needs money to get out of jail, but he doesn't want his parents to find out about his misdeeds. Can grandma send some money to bail him out?

Oftentimes, Jones said, scammers phish for personal information during the call, but she said social media accounts can provide a wealth of information to make their stories seem more realistic.

"You can Google search anybody, but also more seniors are on Facebook, so scammers can hack into those accounts and be able to look up pictures and identify names," Jones said of this scam, which occurs year-round, but seems to pop up more often during the holiday season.

Charity scam

The Tuesday after Thanksgiving has been dubbed "Giving Tuesday." Founded in 2012 by the 92nd Street Y and the United Nations Foundation, this response to commercialization and consumerism seeks to unleash the power of people and organizations to transform their communities and the world by donating their time or money.

Scammers have taken note of Giving Tuesday and formatted emails and letters to coincide with this day of giving. Jones said they may even pose as a legitimate nonprofit, such as the American Red Cross or the Humane Society of the United States.

"You can copy a logo off of anything and ask for money to save the animals or some other kind of charity," she said. "Our elders are kind and want to be able to help out. They can't give their energies, but they can give their money."

IRS scam

A scammer calls pretending to be from the IRS. He informs you that your taxes are delinquent. You better immediately purchase Green Dot, iTunes or Google Play gift cards; otherwise, someone is coming to your home to arrest you.

"The IRS doesn't get paid in gift cards," Jones said. "But they call and they pressure the senior that has never been in trouble."

Jones said seniors want to take care of the matter before their family finds out that they have an arrest warrant hanging over their head, so they purchase and send off the gift cards.

Another variation on this scam involves scammers threatening to turn off seniors' utilities due to a late payment. Seniors can avoid losing their electricity or water by paying via wire transfer or Green Dot gift card.

"We know that's not how you pay your bills. But if you're a scared senior, you're going to do whatever the person's going to tell you," Jones said.

Red flags

Jones said some red flags that you're being drawn into a scam include, being pressured to act immediately and instructed not to tell anybody about a call or email.

"If there's spelling errors in the email, if there's not any way to contact anybody other than through an email, that's questionable," she said. "We always recommend to our seniors to start asking questions. It's OK to ask questions and to talk to family."

Seniors who think they've been targeted by scammers can call Connections Area Agency on Aging for guidance at (800) 432-9209.

Full Article & Source:
Siouxland officials say senior-targeted scams ramp up for holidays

The scammers who bilked seniors out of more than half a billion dollars

There should be a special place in Hades for the criminals who commit financial fraud against seniors.

No one deserves to be a victim of a scam, but it’s particular heinous when perpetrated on people who are living on fixed incomes or surviving on savings they can’t replenish.

Many of the financial crimes against seniors go unreported because the victim are too embarrassed to tell anyone or report the fraud to the authorities.

So I was thrilled recently to see that federal and state law enforcement officials joined forces to round up more than 250 people accused of financial schemes that targeted seniors.

Some examples of the elder financial exploitation prosecuted by the department included:

— Lottery phone scams. Callers convince seniors that they have to pay a fee or taxes before receiving the lottery proceeds.

— Guardianship scams. Family, friend or recent acquaintances will siphon seniors’ money into their own bank accounts.

— IRS impostor scams. Con artists call and pretend to be an IRS agent claiming that victims owe back taxes.

— Grandparent scams. Seniors are tricked into believing that a grandchild has been arrested and needs bail money.

@BestBuy in Springdale, Ohio with my 87 y/o grandmother hoping to speak with the General Manager Kris Combs about why my Grandmother was able to come into his store and purchase two $2000 gift cards with the cashier not asking a single question as to why? #fraud #ElderAbuse 1/ pic.twitter.com/D2ksrttf7B

— Mike Naegel (@MikeNaegel) February 28, 2018

 — Romance scam. In this loathsome scheme, victims are persuaded to send money to someone they’ve met online.

More than two-thirds of caretakers reported that a scammer had targeted their elderly relatives, according to a survey of more than 1,700 people conducted by the Cooperative Credit Union Association, a New England-based trade group.

The survey found that, most often, the attempted fraud was initiated with a telephone call. Nearly 22 percent of scam attempts were made via email or another online contact.

“While regulators are working hard to address the scourge of financial fraud, education is key, particularly with hundreds of millions of Americans’ personal information readily available to criminals,” said Paul Gentile, president and chief executive of the association. “All financial consumers need to take steps to protect themselves financially and digitally, including by being aware of the latest trends in frauds and scams.”

A quarter of the caregivers surveyed said that they had not even discussed financial abuse with their elder relative or friend.

Want more information on how to stamp out elder financial abuse? Read the following.

— With every data breach comes an increased need for fraud sentinels for seniors.
Equifax breach may mean scammers can target more seniors

— From thestreet.com: How to Stop Fraudsters From Preying on Elderly Americans

“A 2017 AARP study states that over half of all U.S. financial fraud victims are over the age of 70, and that 90 percent of investment fraud victims were more than 50 years old. A separate study from the North American Securities Administrators Association notes that 97 percent of fraud prevention specialists say that “most cases” of senior financial fraud go undetected rather than being discovered before they cause serious problems.”

— From Consumer Reports: New Ways to Prevent Elder Financial Abuse

Report Fraud and Senior Scams with Help from ElderWatch – AARP

Law enforcement crackdown caught more than 200 scammers who cheated older Americans out of half a billion dollars. Report a scam and get help from @AARPFightsFraud at 877-908-3360. https://t.co/q033lwN4x2

— Nancy LeaMond (@NancyLeaMond) February 28, 2018

— From the Chicago Tribune: How to spot elder financial abuse

Please help detect and deter elder financial abuse.

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The scammers who bilked seniors out of more than half a billion dollars