The U.S. Justice Department
released the below information:
Attorney General Jeff
Sessions and law enforcement partners announced today the largest coordinated
sweep of elder fraud cases in history.
The cases involve more than two hundred and fifty defendants from around
the globe who victimized more than a million Americans, most of whom were
elderly. The cases include criminal,
civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial
schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes
caused losses of more than half a billion dollars. The Department coordinated its announcement
with the FTC and state Attorneys General, who independently filed numerous
cases targeting elder frauds within the sweep period.
Attorney General Sessions was
joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief
Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and
Kansas Attorney General and President of the National Association of Attorneys
General Derek Schmidt.
“The Justice Department and
its partners are taking unprecedented, coordinated action to protect elderly
Americans from financial threats, both foreign and domestic,” said Attorney
General Sessions. “Today’s actions send
a clear message: we will hold
perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life
savings of older Americans, we will respond with all the tools at the
Department’s disposal – criminal prosecutions to punish offenders, civil
injunctions to shut the schemes down, and asset forfeiture to take back
ill-gotten gains. Today is only the
beginning. I have directed Department
prosecutors to coordinate with both domestic law enforcement partners and
foreign counterparts to stop these criminals from exploiting our seniors.”
The actions charged a variety
of fraud schemes, ranging from mass mailing, telemarketing and investment
frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational
criminal organizations that defrauded hundreds of thousands of elderly victims,
while others involved a single relative or fiduciary who took advantage of an
individual victim. The schemes charged
in these cases caused losses to more than a million victims.
"Winners. That’s what so
many of the people who received these solicitations in the mail thought they
were. But they’re not. They are victims (link is external) of scams that Postal
Inspectors have seen and investigated for decades. In fact, some of the same
operators we encountered 20 years ago are back. But so are we. Yesterday,
Postal Inspectors around the country executed search warrants on 12 locations
that some of these same operators used to run their scams. We’re letting the
American public know – and especially our vulnerable older Americans – that
Postal Inspectors are working hard to protect them and ensure their confidence
in the U.S. Mail,” said Chief Postal Inspector Cottrell.
“Over the last year, the FBI
has initiated more than 200 financial crimes cases involving elderly victims
who were devastated financially, emotionally, mentally and physically. Picking
up the pieces of these fraud schemes can be equally as traumatizing for the
caregivers of these elderly victims,” said Acting Deputy Director Bowdich. “The FBI reminds seniors and their caregivers
to be vigilant. If any person believes they are the victim of, or have
knowledge of fraud involving an elderly person, regardless of the loss amount,
they should report it to the FBI.”
Actions against mass-mailing
fraud industry
As part of the initiative,
the Department’s Consumer Protection Branch, working with the U.S. Attorney’s
Office for the Eastern District of New York and others, brought numerous cases
this past week in a coordinated strike against more than 43 mass-mailing fraud
operators, including criminal charges against six individuals. In addition, law enforcement agents executed
14 premises search warrants from Las Vegas to south Florida, served numerous
asset seizure warrants, and coordinated with the Vancouver Police in Canada,
who executed over 20 warrants, including search warrants on business premises.
“The defendants targeted
elderly and vulnerable consumers both in the United States and abroad, using
U.S. addresses and the U.S. mails to try to legitimize their fraudulent
schemes,” said U.S. Attorney for the Eastern District of New York Richard P.
Donoghue. “They sold false promises of
life-changing prizes that never came true.
We will pursue the perpetrators of these mail schemes wherever they are
located, and hold them accountable.”
These recently filed cases
particularly targeted transnational criminal actors who collectively defrauded
at least a million victims out of hundreds of millions of dollars. Indeed, just one of the schemes prosecuted
criminally by the Consumer Protection Branch operated from 14 foreign countries
to cost American victims more than $30 million.
Click here for map showing a transnational, single fraud scheme.
Mass-mailing fraud inflicts
hundreds of millions of dollars in losses to elderly U.S. victims each
year. Department prosecutors and U.S.
Postal Inspectors have taken a comprehensive approach to combatting this fraud,
disrupting and prosecuting individuals who manage the schemes, artists who
draft the fraudulent solicitations, list brokers who supply victim lists, and
individuals who collect victim payments. Click here for fact-sheet with cases
on mass-mailing fraud.
Actions against other elder
fraud schemes
Prosecutors across the
country from the Criminal Division’s Fraud Section, the Consumer Protection
Branch and the U.S. Attorney’s Offices have heeded the call to focus resources
on elder fraud cases. Over 50 U.S. Attorney’s
Offices and Department Components filed elder fraud cases in the last
year. A list of Elder Fraud cases is
provided on this interactive map.
Some examples of the elder
financial exploitation prosecuted by the Department include:
“Lottery phone scams,” in
which callers convince seniors that a large fee or taxes must be paid before
one can receive lottery winnings;
“Grandparent scams,” which
convince seniors that their grandchildren have been arrested and need bail
money;
“Romance scams,” which lull
victims to believe that their online paramour needs funds for a U.S. visit or
some other purpose;
“IRS imposter schemes,” which
defraud victims by posing as IRS agents and claiming that victims owe back
taxes;
“Guardianship schemes,” which
siphon seniors’ financial resources into the bank accounts of deceitful
relatives or guardians.
Many of these cases
illustrate how an elderly American can lose his or her life savings to a
duplicitous relative, guardian, or stranger who gains the victim’s trust. The devastating effects these cases have on
victims and their families, both financially and psychologically, make
prosecuting elder fraud a key Department priority.
Public education
The Department has partnered
with Senior Corps, a national service program administered by the federal
agency the Corporation for National and Community Service, to educate seniors
and prevent further victimization. The Senior Corps program engages more than
245,000 older adults in intensive service each year, who in turn, serve more
than 840,000 additional seniors, including 332,000 veterans.
Using its vast network
operating in more than 30,000 locations, Senior Corps volunteers will
communicate about elder fraud to potential victims across the country and will
use their skills, knowledge and experience to educate their peers and
caregivers about the most prolific types of schemes and how to avoid them.
Click here for information on Senior Corps’ efforts to reduce elder fraud.
Coordination with state
officials
Kansas Attorney General
Schmidt highlighted the cases filed by state Attorneys General targeting elder
frauds within in the sweep period, and he emphasized efforts at the state level
to combat elder abuse and protect seniors from fraud and exploitation. He encouraged all of the state Attorneys
General to devote enforcement and public education resources to preventing
financial exploitation of senior citizens.
Coordination with foreign law
enforcement
Exceptional assistance from
foreign law enforcement partners amplified the effectiveness of the
Department’s initiative. The sweep
announced today benefited greatly from the work of the International
Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal
law enforcement agencies from Australia, Belgium, Canada, Europol, the
Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United
States. The IMMFWG is co-chaired by the
U.S. Department of Justice and FTC, and law enforcement in the United Kingdom,
and serves as a model for international cooperation against specific threats
that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude
for the outstanding efforts of the working group, including law enforcement
action taken as part of the sweep by the Vancouver Police Department in Canada
to halt mass mailing schemes that defrauded hundreds of thousands of elderly
victims worldwide.
Elder fraud complaints
Elder fraud complaints may be
filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety
of resources relating to elder fraud victimization through its Office of
Victims of Crime, which can be reached at www.ovc.gov.