Source: US FBI
BOSTON – Thirteen individuals have been charged in connection with a transnational elder fraud scheme that allegedly involved a “call center” operation in the Dominican Republic that tricked hundreds of elderly victims in the United States into believing that their grandchildren or other close family members were in trouble and needed money. In total, the investigation identified over 400 victims with an average age of 84, including at least 50 in Massachusetts, and more than $5 million in losses.
According to the charging documents, the defendants, led by defendant Oscar Manuel Castanos Garcia, ran a sophisticated “call center” operation in the Dominican Republic that tricked hundreds of elderly victims in the United States into believing that their grandchildren and other close family members were in trouble and needed money. Once the defendants obtained the money, they allegedly laundered their illicit proceeds back to the Dominican Republic.
Castanos Garcia allegedly oversaw call centers in the Dominican Republic, where he employed co-conspirators who spoke English and carried out what are commonly known as “grandparent scams.” These scams would begin with an “Opener” employee, who would call victims and pretend to be a grandson or granddaughter who was in an accident. Then, a “Closer” would allegedly follow up with another call, pretending to be their grandchild’s attorney, asking for a sum of money to pay for their grandchild’s fees due to the accident. Castanos Garcia allegedly ran these call center locations with the help of several managers who allegedly supervised, instructed and paid the employees.
As alleged in the indictment, callers for Castanos Garcia’s call centers would instruct elderly victims to provide cash to “runners” in the United States. Most often, the callers would instruct victims to give the packages with cash to rideshare drivers who were ordered to the victim’s house by a runner. The runners would then have the unsuspecting rideshare drivers deliver the packages to the runners at nearby locations. In some cases, the callers would direct the victims to ship packages of cash to specified addresses via mail or commercial carriers.
Often times, the call center would allegedly call victims again and ask for additional funds for their grandchildren, sometimes two or three additional times. For example, callers allegedly would claim that there had been a “mix up” or that a “pregnant women’s baby was lost in the crash.”
At times, co-conspirators would allegedly order unwitting rideshare drivers to drive the elderly victims to the bank to withdraw additional funds.
It is further alleged that, at the direction of Castanos Garcia’s and others, the runners would engage in financial transactions with the victims’ money, including depositing cash into bank accounts and delivering it to co-conspirators in New York and elsewhere. Operators of the scheme relied on money launderers in the United States and the Dominican Republic to transmit proceeds from victims in the United States to Castanos Garcia and others in the Dominican Republic.
Members of the public who believe they may be victims of this case, or other elder fraud scams, should 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.
The charge of Conspiracy to Commit Mail Fraud and Wire Fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000, or twice the loss to the victim. The charge of money laundering conspiracy provides for up to 20 years in prison, three years of supervised release and a fine of up to $500,000 or twice the amount of laundered funds, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Justice Department’s Office of International Affairs; the Dominican National Police; División Especial de Investigación del Crimen Organizado Internacional (DEICROI); Central de Investigaciones Criminales (DICRIM); and the Ministerio Publico. Assistant U.S. Attorney David M. Holcomb of the Criminal Division is prosecuting the case.
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.
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ADDENDUM
|
Defendant |
Alleged Role |
Charges |
Status |
| Oscar Manuel Castanos Garcia, 33, of the Dominican Republic | Call Center Operator | Conspiracy to commit mail fraud and wire fraud; and money laundering conspiracy. | In Custody |
| Joel Jose Cruz Rodriguez, a/k/a “Paflow,” 33, of the Dominican Republic | Call Center Manager | Conspiracy to commit mail fraud and wire fraud; and money laundering conspiracy. | In Custody |
| Edward Jose Puello Garcia, 44, of the Dominican Republic | Call Center Manager | Conspiracy to commit mail fraud and wire fraud; and money laundering conspiracy. | In Custody |
| Joan Manuel Mathilda Leon, 27, of the Dominican Republic and the Bronx, N.Y. | Recruited and oversaw “runners”; runner |
Conspiracy to Commit Mail Fraud and Wire Fraud Money Laundering Conspiracy. |
In Custody |
|
Luis German Santos Burgos, a/k/a “Mambo Flow,” 32, of the Dominican Republic and Dorchester, Mass. |
Call Center Affiliate | Conspiracy to commit mail fraud and wire fraud; and money laundering conspiracy. | In Custody |
| Gerardo Heriberto Nuñez Nuñez, 41, of the Dominican Republic | Money Launderer | Money laundering conspiracy. | In Custody |
| Ransel St Arlin Tavarez Jimenez, 26, of the Bronx, N.Y. | Recruited and organized “runners”; runner | Conspiracy to commit mail fraud and wire fraud; and money laundering conspiracy. | At-Large |
| Joel Francisco Mathilda Leon, 26, of the Bronx, N.Y. | Runner | Conspiracy to commit mail fraud and wire fraud; and money laundering conspiracy. | At-Large |
| Andry Joel Baez Santana, 31, of the Bronx, N.Y. | Runner | Conspiracy to commit mail fraud and wire fraud; and money laundering conspiracy. | In Custody |
| Jose Osvaldo Polanco Batista, a/k/a “Obbi,” 28, of Winter Park, Fla. | Runner | Conspiracy to commit mail fraud and wire fraud; and money laundering conspiracy. | At-Large |
| Chaman Samael Silverio Balbuena, a/k/a “Chammy,” 31, of Defiance, Mo. | Runner | Conspiracy to commit mail fraud and wire fraud; and money laundering conspiracy. | In Custody |
| Manuel Nicolas Rivera Cueto, 25, of Santa Clara, Cal. | Runner | Conspiracy to commit mail fraud and wire fraud; and money laundering conspiracy. | In Custody |
| Jose Arony Fermin Vasquez, a/k/a “Chiky,” 31, of N.J. | Runner | Conspiracy to commit mail fraud and wire fraud; and money laundering conspiracy. | At-Large |