No fewer than twenty-five Canadian suspects have been charged with defrauding elderly Americans of $21 million in a widespread “grandparent scam,” according to a federal indictment unsealed on Tuesday.
The individuals, allegedly operating out of Montreal and other locations in Quebec, face wire fraud charges for their roles in what U.S. prosecutors described as a highly organised scheme that exploited hundreds of retirees across the United States.
Thomas Demeo, special agent in charge of the Boston field office of the IRS Criminal Investigation Division, described the operation as a “transnational criminal enterprise with the sole intent of defrauding hundreds of retirees of their life savings by preying on their emotions and deceiving them into thinking that their loved ones were in peril.”
According to prosecutors, 23 of the 25 suspects were arrested in Canada on Tuesday, while two remain at large. Their whereabouts were not disclosed.
The indictment outlines how the alleged scammers used a common fraud tactic known as the “grandparent scam,” where victims were contacted by phone and told their grandchild had been in a vehicle collision and was subsequently arrested.
The callers would claim that a “strict gag order” prevented the victims from telling anyone about the request for money, pressuring them to send thousands of dollars.
Victims were identified across 40 states, from Alabama to Wyoming. While federal prosecutors estimated the scheme’s total earnings at $21 million, the amount lost by individual victims was not specified.
The indictment, which was filed under seal on 20 February in Vermont, also includes a money laundering charge against five of the defendants, who are accused of attempting to obscure the origins of their illicit gains.
U.S. prosecutors revealed that some of the suspects were caught making fraudulent calls to potential Vermont victims when authorities raided Montreal-area call centres in June. The statement from the U.S. attorney’s office in Vermont indicated that the scheme had been active since 2021.
Five of the suspects, including the two still at large, were allegedly involved in managing the call centres. The indictment claims that the operation was structured, with some members responsible for making initial cold calls while others acted as “closers” who pressured victims into sending money or arranging for cash pickups.
Prosecutors stated that the scammers used detailed spreadsheets containing victims’ personal information, including names, addresses, phone numbers, and estimated household incomes.
Advanced technology was reportedly employed to mask the origins of calls, making them appear as though they were coming from within the United States. The suspects frequently changed phone numbers by switching SIM cards to evade detection.
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The indictment further alleged that the operation utilised associates posing as bail bond employees to collect money from victims’ homes. In cases where a victim was out of reach, ride-hailing services were allegedly used to pick up and deliver the money. Some victims were instructed to mail cash to abandoned properties, which were identified through real estate websites.
To transfer the funds to Canada, prosecutors said, the suspects sometimes used cryptocurrency to obscure the money’s origin.
Authorities intend to seek forfeiture of the allegedly stolen funds. If convicted, the five defendants facing wire fraud and money laundering charges could face up to 40 years in prison. The remaining 20, who are charged with wire fraud alone, each face a maximum sentence of 20 years.
According to NBC News, court records have indicated that none of the defendants have yet appeared in federal court.
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