Federal Investigation Leads to Charges in Elderly Scam
Federal authorities have taken significant action against a complex scheme targeting senior citizens, leading to the indictment of 13 individuals accused of running a “grandparent scam” that exploited hundreds of vulnerable elderly victims, resulting in the loss of millions. U.S. Attorney for Massachusetts, Leah Foley, made this announcement during a press conference held at the Moakley Federal Courthouse in Boston.
How the Scheme Operated
The investigation commenced when Uber reported suspicious activity involving its drivers to the FBI, who appeared to unknowingly assist in the fraudulent operations. The alleged ringleader of the scam, Oscar Manuel Castanos Garcia, led a network of organized call centers based in the Dominican Republic, where many of the elderly victims resided, particularly in Massachusetts.
“Their goal was to deceive our grandparents, parents, neighbors, and friends into surrendering their life savings under false pretenses. They succeeded in stealing millions,” Foley stated.
Victims, Losses and Impact
The average age of the victims was reported to be 84, with total losses exceeding $5 million. Foley highlighted that approximately 400 individuals fell victim to the scam, with 50 of these victims located in the United States. Furthermore, she expressed concern that numerous other victims might have refrained from reporting due to feelings of shame related to their situation.
| Element | Details |
|---|---|
| Number of Victims | Approximately 400 |
| Total Amount Lost | Over $5 million |
| Average Age of Victims | 84 years |
Roles of Uber Drivers
Foley explained that the scammers often contacted Uber drivers under false pretenses, claiming that a relative was placing important documents inside a vehicle or needing transportation to the bank. These drivers, unaware of their involvement in a criminal plot, unwittingly facilitated the transfer of cash for the perpetrators.
Uber’s Global Security team took proactive steps by alerting the FBI about the suspicious activities, and since then, the company has revised its training protocols to enhance driver awareness regarding potential scams. A spokesperson for Uber elaborated, “We commend the efforts of investigators who have worked diligently to bring these individuals to justice and help protect our communities.”
Ongoing Legal Proceedings
Charges against those involved include conspiracy to commit mail and wire fraud, as well as money laundering conspiracy. Of the 13 indicted, nine individuals are currently in custody, while several remain fugitives, including two in the Dominican Republic and others in the United States.
Victims of the scam are advised to reach out if they suspect they have been targeted. The Justice Department offers resources aimed at preventing similar crimes in the future. Unfortunately, Foley indicated that the likelihood of victims recovering their stolen funds remains slim.
