Thirteen people have been charged in connection with an alleged transnational elder fraud scheme that targeted elderly victims across the United States. The scheme reportedly operated from a call center in the Dominican Republic and involved tricking more than 400 individuals, many of whom were over the age of 80, into sending money under false pretenses.
According to court documents, Oscar Manuel Castanos Garcia is accused of leading the operation. He allegedly managed call centers where employees carried out so-called “grandparent scams.” In these scams, callers would pose as grandchildren or attorneys and claim that a family member was in trouble and needed money urgently. Victims were then instructed to hand over cash to runners or send it by mail.
Authorities say the organization used rideshare drivers, who were unaware of their role in the scheme, to collect packages of cash from victims’ homes. In some instances, elderly victims were driven to banks to withdraw additional funds. The money was then laundered through various transactions before being sent back to co-conspirators in the Dominican Republic and elsewhere.
The investigation identified more than $5 million in losses, with at least 50 victims residing in Massachusetts. The U.S. Attorney’s Office has urged anyone who believes they may be a victim of this case or similar elder fraud schemes to contact USAMA.VictimAssistance@usdoj.gov or call 1-800-CALL-FBI (1-800-225-5324). Suspected fraud can also be reported on the FBI’s IC3 Elder Fraud Complaint Center.
If convicted, those charged with conspiracy to commit mail fraud and wire fraud face up to 20 years in prison and significant fines. Charges related to money laundering conspiracy carry similar penalties. Sentencing will be determined by a federal district court judge according to U.S. Sentencing Guidelines.
United States Attorney Leah B. Foley stated: “The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.”
Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Division, joined Foley in announcing the charges. The Justice Department’s Office of International Affairs and law enforcement agencies from both the United States and Dominican Republic provided assistance during the investigation.
Assistant U.S. Attorney David M. Holcomb is prosecuting the case.
The defendants named include Oscar Manuel Castanos Garcia; Joel Jose Cruz Rodriguez; Edward Jose Puello Garcia; Joan Manuel Mathilda Leon; Luis German Santos Burgos; Gerardo Heriberto Nuñez Nuñez; Ransel St Arlin Tavarez Jimenez; Joel Francisco Mathilda Leon; Andry Joel Baez Santana; Jose Osvaldo Polanco Batista; Chaman Samael Silverio Balbuena; Manuel Nicolas Rivera Cueto; and Jose Arony Fermin Vasquez.
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