Federal prosecutors say a Brookfield man was behind the latest money laundering operation targeting elderly people.
A recently returned indictment alleges Ankurkumar Patel conspired with other people to launder over $1 million from elderly victims in multiple states, Richard G. Frohling, the Acting U.S. Attorney for the Eastern District of Wisconsin, said in a Sept. 9 statement.
One victim, in Sheboygan, was among those who fell prey to what is known as a “Phantom Hacker Scam.”
Patel, 41, is charged with with one count of money laundering conspiracy, and one count of substantive money laundering.
Here’s how the scheme works
A participant in the scheme poses as a customer service agent at a company or government agency. That person, who often is located overseas, contacts the victim — or convinces the victim to contact them — and falsely claims the victim’s identity or bank account has been hacked or compromised.
The criminal then refers the victim to a co-conspirator posing as a law enforcement agent.
That person directs the victim to move their funds, usually in the form of cash or physical gold, to a third-party or government account for safe keeping.
The co-conspirator would later coordinate the transfer of the victim’s money to other participants in the scheme who act as couriers.
An indictment against Patel, returned on Aug. 12, alleges Patel personally retrieved more than $1 million from victims and that he conspired to launder it by distributing it to other co-conspirators through anonymous transactions, Frohling said in the statement.
Last month, a federal grand jury in Wisconsin indicted an Indian citizen in a similar scheme that also involved convincing a New Berlin couple to convert their cash into gold from them.
In that case, more than $500,000 worth of gold was transferred by the victims to people whom they believed worked with the federal government.
Patel would face a maximum of 20 years behind bars and more than $500,000 in fines, or twice the value of the property involved, if convicted of the money laundering conspiracy.
He also could face up to 10 years’ imprisonment and a fine of not more than $250,000, or twice the amount of the criminally derived property, if he’s convicted of the substantive money laundering count.
This case was investigated by the FBI in Milwaukee and Homeland Security Investigations in St. Louis. It will be prosecuted by Assistant U.S. Attorney Peter J. Smyczek, who is based in Milwaukee.
Here’s how you can help the investigation
If you believe you or someone you know may have fallen victim to a similar scam, contact the FBI at 414-276-4684.
Chris Ramirez covers courts for the Milwaukee Journal Sentinel. He can be reached at caramirez@gannett.com.
This article originally appeared on Milwaukee Journal Sentinel: Brookfield man indicted in ‘Phantom Hacker Scam’ that targeted the elderly
Reporting by Chris Ramirez, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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