Ringleader of ‘Grandparent Scam’ Run Out of Dominican Republic Extradited to U.S.

In total, 17 individuals have been indicted in the case – 11 who operated a call center in the Dominican Republic and six in New York who served as couriers to collect the money the elderly thought was needed to help children or grandchildren in need.

The last reported action was the extradition of Juan Rafael Parra Arias, 41; Miguel Angel Vasquez, 24; and Jose Ismael Dilone Rodriguez, 34, the Department of Justice announced in an Aug. 5 press release. Their two countrymen, Rafael Rodriguez Guzman, 59, and Felix Reynoso Ventura, 37, were extradited in July, the DOJ reported on July 23.

How the Scam Played Out

Authorities allege members of the gang in the Dominican call center, referred to as “openers,” called their victims in the United States and impersonated the victims’ children, grandchildren or other close relatives. The call center used technology to make it appear the calls were coming from inside the U.S. Victims were usually told their grandchild had been in a car accident and had been arrested and needed money for bail, according to the indictment.

If the victim fell for this ruse, other members of the team, called “closers,” allegedly impersonated defense attorneys, police officers or court personnel to convince the elderly victims to send thousands of dollars in cash to help their loved ones. Couriers would come to their homes to pick up the money or instruct the victims to mail the payment to a specific address, the DOJ explained.

Officials Blast Predators in Scheme

The perpetrators of this kind of fraud “target our vulnerable senior population,” New Jersey U.S. Attorney Philip R. Sellinger said. “They count on the grandparents’ love and devotion to their families to convince them to put up money.”

In his statements, Sellinger noted that some involved in the scam “impersonated grandchildren in distress, while others impersonated police officers and lawyers to convince the victims to pay up, “which the panic-stricken grandparents often did.” Another group of conspirators served as couriers, “traveling to the homes of the scam victims to pick up the money.”

“My office will protect the rights of all victims, and we will relentlessly prosecute those who allegedly target the vulnerable to cheat them out of their savings,” Sellinger vowed.

‘Collectively Tricked Into Handing Over Millions’

HSI Special Agent in Charge Darren B. McCormack said the gang of fraudsters were “heartlessly targeting” elderly victims “who were collectively tricked into handing over millions of dollars.”

“For their own selfish gain, these accused individuals threatened innocent Americans’ livelihoods and robbed them of their precious time and any nest eggs they had secured for themselves,” he added.

McCormack said this “can truly happen to anybody, and while we will always be there to assist victims, we hope that raising awareness will give these criminal opportunists fewer chances to target the public.”

“These defendants and their co-conspirators are accused of heartlessly robbing countless elderly victims of their precious time and often their life savings – all from more than 1,500 miles away, former HSI Special Agent in Charge Ivan J. Arvelo said. “The merciless greed of perpetrators is boundless, but is no match for HSI New York’s El Dorado Task Force, its Cyber Intrusion Group and the greater law enforcement community. I am proud to stand alongside our global partners in our relentless commitment to the safety and overall well-being of the vulnerable public.”

Arvelo was recently appointed to head HSI’s Intellectual Property Rights Coordination Center.

Acting Special Agent in Charge Bradley Parker of Social Security Administration’s Office of Inspector General said this scam “is a cruel fraud scheme that deliberately preys on elderly and vulnerable persons within society. Perpetrators, often cowardly operating off-shore, cause extreme emotional and financial harm to the innocent people they target in the commission of this crime.”

In addition to the federal officials, New York Police Department Commission Edward A. Caban said the crimes of the fraudsters “are truly depraved in their nature: targeting our parents and grandparents, aunts and uncles, and others in an elaborate venture to bilk them of their hard-earned savings. I applaud our NYPD investigators and all of our federal partners involved in this important case for their tireless dedication to our shared public safety mission.”

Those Indicted and the Penalties for Conviction

The DOJ released the names of the co-conspirators in a 19-count indictment, according to an April 30 press release. After the August extraditions, the remaining six Dominicans facing charges are Nefy Parra Arias, Nelson Gonzalez Acevedo, Miguel Fortuna Solano, Carlos Javier Estevez, Louis Rodriguez Serrano and Jovanni Rosario Garcia.

The five men face charges of mail and wire fraud conspiracy, wire fraud, mail fraud and conspiracy to commit money laundering. The maximum penalties are 20 years in prison on each count, a maximum fine of $250,000 for each count of mail and wire fraud, and a fine of up to $500,000 for money laundering conspiracy.

Victor Anthony Valdez, 39, of the Bronx, was indicted on June 25 on one count of wire fraud conspiracy for his role in the scam, the U.S. Attorney’s Office announced in a statement. He faces up to 20 years in prison and a $250,000 fine.

He is added to five other New York residents charged with wire fraud conspiracy who had not been arrested as of the last report. Those individuals named in the April 30 release are Endy Jose Torres Moran of Brooklyn, Ivan Alexander Inoa Suero of New York City, Jhonny Cepeda of New York City, Ramon Hurtado of New York City and Yuleisy Roque of the Bronx.

Federal authorities emphasized that an indictment is just an opinion that there is evidence to support prosecution of a crime. It is not evidence of guilt.

If You Are a Victim

“If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311),” the DOJ said in its press releases. “Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals on a case-by-case basis.”

Before action can be taken to address the wrong, victims must report the crime, the department said.

“Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses,” the DOJ added.

The hotline is open weekdays from 10 a.m. to 6 p.m. Eastern Time and is available in English, Spanish and other languages.

More information about the DOJ’s efforts to help American seniors is available at its Elder Justice Initiative webpage and the Consumer Protection Branch website. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov or by calling 877-FTC-HELP.

A Sad Fact of Life: Law of the Jungle

In the wild, a predator targets the weakest member of the herd – a young one separated from its mother, an animal hobbled by injury, or the old ones who can’t keep up. So-called “civilized society” is no different.

The vulnerable are targeted. The number of child sex abuse articles and elder fraud reports The Daily Muck has covered – and, unfortunately, must continue to cover – is a testament to that, from an investment scam in Iowa to a decades-long psychic mail fraud scheme.

The good news is that those reports have noted hefty punishments for the perpetrators. The bad news is that those are just the cases that authorities have heard about and resolved.

If you have been victimized, don’t be ashamed to admit “I’ve been had.” Be part of a solution and not just a statistic in the problem. Take advantage of the government programs set up to combat this epidemic and take action to bring the criminals to justice.