An Indian citizen was indicted by a federal grand jury in Wisconsin for an alleged money laundering scheme that targeted elderly victims and involved taking cash and gold from them.
More than $500,000 worth of gold was handed over by victims to people whom they believed worked with the federal government, Richard G. Frohling, the Acting U.S. Attorney for the Eastern District of Wisconsin, said in a statement.
Roshan Shah, 21, was charged with conspiracy to commit money laundering and indicted on Aug. 19. Court records show he pleaded not guilty to the charge at federal court in Milwaukee on Aug. 21.
Here’s how authorities say the scheme worked
Court documents say Shah traveled to Wisconsin, Florida, Arizona and other states and picked up cash and gold from various fraud victims. He would then transfer the money he made to other members of the conspiracy.
Unknown co-conspirators posing as law enforcement were able to convince people they were victims of a massive, broader scheme in the United States, and that they needed to transfer their assets to gold.
They were then told a courier would pick up items and put them in a safety deposit box in Washington, D.C., purportedly for safe keeping.
In one instance, a New Berlin couple told local police they had been speaking with a person who claimed to be a special agent for the Department of Treasury.
That person told them they were among the multiple victims of a wide fraud scheme and that they needed to transfer their money to a safety deposit box that was opened in their name at the George W. Bush Federal Building in Washington, D.C.
Court records show the couple liquidated $526,095.40 of their funds from various investment accounts between June and July, and used the money to buy 1-ounce gold Maple Leaf coins from a company in Lake Geneva.
The coins were placed in a box and addressed to the couple’s safety deposit box.
Court records show the package was later picked up at the victims’ home by an unknown courier who pulled up in a dark blue or black Audi sedan.
Other pickups from other victims occurred in July.
The suspect claims in court documents to be middle man
Shah was arrested Aug. 4 during an arrest operation at the victim’s home conducted by New Berlin police.
Federal prosecutors say Shah is a citizen of India who lived in Canada on a student visa, and that he entered the United States in June through Orlando, Florida, on a visitor’s visa.
Shah told investigators he was working with two other individuals and was paid $2,000 to $4,000 per pickup, a complaint said.
The case was investigated by the New Berlin Police Department and the Department of Homeland Security’s Homeland Security Investigations division.
Assistant U.S. Attorney Zachary J. Corey will prosecute the case.
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: Scheme reportedly convinced New Berlin couple to hand over $526K to fake federal workers
Reporting by Chris Ramirez, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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