Criminal Investigations

HOUSTON - Representatives from numerous federal and state law enforcement agencies have formed a working group to investigate and prosecute illegal activity related to Hurricane Harvey.

Acting U.S. Attorney Abe Martinez made the announcement along with Acting U.S. Attorney Corey R. Amundson of the Middle District of Louisiana who serves as the Acting Executive Director of the National Center for Disaster Fraud (NCDF), Harris County District Attorney (DA) Kim Ogg, Texas Attorney General Ken Paxton, Director Shamoil T. Shipchandler of the Securities and Exchange Commission (SEC) -Fort Worth Regional Office, Special Agent in Charge PerryeK. Turner of the FBI, Special Agent in Charge David Green of the Department of Homeland Security – Office of Inspector General (DHS-OIG), Special Agent in Charge Mark Dawson of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Special Agent in Charge D. Richard Goss of IRS – Criminal Investigations (CI), Special Agent in Charge Douglas W. Thigpen of the U.S. Secret Service (USSS), Regional Director Dama Brown of the Federal Trade Commission (FTC) and Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

“This disaster has brought and will continue to bring unprecedented human and financial loss to our communities, and victims of this event have already suffered staggering devastation,” said Martinez. “The last thing that victims of this damage need is to be victimized again. Under the lessons learned from Hurricane Katrina, we bring a comprehensive law enforcement focus to combat any criminal activity arising from the tragedy of Hurricane Harvey and the rebuilding efforts underway.”

While each of these agencies has a history of working together, bringing them together into one focused group is an optimal way to address the varied threats resulting from Hurricane Harvey. The working group will involve all levels of law enforcement and includes representatives from the United States Attorney’s Office for the Southern District of Texas, NCDF, Harris County DA’s Office, Texas Attorney General’s Office, SEC, FBI, DHS-OIG, HSI, IRS-CI, USSS, FTC and the ATF.  Authorities are already receiving calls about scams in our area and have forwarded complaints to the relevant agencies.

“We intend to use all of the resources at our disposal to both help our registrants and to hold those accountable who try to use this disaster to take advantage of other people,” said Chairman Jay Clayton of the SEC. “There is no place for fraud or shady practices in the rebuilding and recovery of the communities in Texas and Louisiana that have been affected by Hurricane Harvey.”
"As we all work to rebuild the Houston/Gulf Coast region and look for ways to help, it's important to perform due diligence before giving contributions to anyone soliciting donations or individuals offering to provide assistance to those affected by Harvey, whether the solicitations are in person, via email or telephone,” said Turner. “The FBI is dedicated to investigating and preventing this type of fraud, especially when it involves preying on individuals during times of great need.”

“As we have witnessed throughout this disaster, the best of the American spirit shines through with neighbors and strangers helping one another. Sadly, at the same time, these situations also bring out those that would try to prey upon those who are willing to give of themselves to help out,” said Dawson. “Rest assured that HSI will, in coordination with our fellow law enforcement partners, bring its investigative resources to bear to stop those that would seek to take advantage of this situation for their personal and illegal gain.”

Natural disasters often bring out the best in human compassion and spirit, they can also lead to unscrupulous individuals and organizations taking advantage of those in need of and/or providing government services. Examples of typical illegal activity under the jurisdiction of each of the agencies in the working group include:

• Impersonation of federal law enforcement officials
• Identity theft
• Fraudulent submission of claims to insurance companies and the federal government
• Fraudulent activity related to solicitations for donations and charitable giving
• Fraudulent activity related to individuals and organizations promising high investmentreturns from profits from recovery and cleanup efforts
• Price gouging
• Theft, looting, and other violent crime

Consumers also can report scams and other consumer issues to the FTC and get help if they think they may be a victim of identity theft.

Members of the public are encouraged to contact the NCDF to report all types of disaster fraud. The U.S. Department of Justice established the NCDF following Hurricane Katrina when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster and includes more than 30 federal, state and local law enforcement agencies. The team includes law enforcement agents who review those reports and make referrals to the appropriate investigative agencies. The NCDF provides de-confliction, coordination and expertise in handling disaster fraud matters and is focused on protecting disaster victims and any funds dedicated to disaster victims.

The Disaster Fraud Hotline is 1-866-720-5721 and is staffed by a live operator 24 hours a day, seven days a week. Members of the public can also send an email or fax information to 225-3344707.

In addition, the Texas Attorney General’s Office is asking Texans to please contact their Consumer Protection Division and file a complaint if they feel they have encountered price gouging or have been scammed or fall victim to a charities fraud. They can call the toll-free hotline at 800-621-0508, send an email or file a complaint on via the web.

The SEC provided this information yesterday and continues to monitor the market impact of Hurricane Harvey and encourage affected entities and investment professionals to contact Commission staff with questions and concerns.
For additional information, you may also visit FEMA’s Hurricane Harvey resource page.

The Department of Justice also announced yesterday Tips on Avoiding Fraudulent Charitable Contribution Schemes.

Various personnel will also be available for any additional information, comments or interviews regarding this effort. Members of the media wishing to speak with anyone are asked to send an email with your request and preferred times and the office will respond accordingly.

SAN FRANCISCO - A former Special Agent with the U.S. Secret Service pleaded guilty today to charges of money laundering, announced U.S. Attorney Brian J. Stretch, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, IRS-Criminal Investigation (IRS-CI) Washington D.C. Field Office Cyber Crimes Unit Special Agent in Charge Kimberly A. Lappin, Special Agent in Charge John Bennett of the FBI’s San Francisco Division, and Special Agent in Charge of the Department of Homeland Security Office of the Inspector General Houston Field Office David Green.

Shaun W. Bridges, 35, of Laurel, Md., pleaded guilty to one count of money laundering before U.S. District Court Judge Richard Seeborg of the Northern District of California. Sentencing has been set for November 7, 2017. Bridges had been a Special Agent with the U.S. Secret Service for approximately six years in the Baltimore Field Office. Between 2012 and 2014, he was assigned to the Baltimore Silk Road Task Force, a multi-agency group investigating illegal activity on the Silk Road, a covert online marketplace for illicit goods, including drugs. Bridges’ responsibilities included, among other things, conducting forensic computer investigations in an effort to locate, identify and prosecute targets of the Silk Road Task Force, including Ross Ulbricht, a/k/a “Dread Pirate Roberts,” who ran the Silk Road from the Northern District of California. In 2015, Bridges pleaded guilty to one count of money laundering and one count of obstruction of justice related to his theft and diversion of over $800,000 in digital currency over which he gained control as part of his role on the Baltimore Silk Road Task Force. In December 2015, Bridges was sentenced to 71 months in prison on those charges.

Prior to reporting to prison to begin serving his sentence for the 2015 conviction, Bridges was arrested and taken into custody on new charges related to another theft of approximately 1,600 bitcoin, valued at the time of the theft at approximately $359,005, (approximately $6.6 million today) from a digital wallet belonging to the U.S. government. According to admissions made in connection with his guilty plea in this case, Bridges admitted to using a private key to access a digital wallet belonging to the U.S. government, and subsequently transferring the bitcoin to other digital wallets at other bitcoin exchanges to which only he had access. In the course of the investigation, U.S. agents were able to locate and seize approximately 600 of the stolen bitcoin and, as part of his plea, Bridges agreed to turn over the remaining stolen bitcoin.

The case is being prosecuted by Assistant U.S. Attorney William Frentzen and Trial Attorney Richard B. Evans of the U.S. Department of Justice Criminal Division’s Public Integrity Section with assistance from Bridget Kilkenny. Assistant U.S. Attorney David Countryman is handling asset forfeiture aspects of the case. The case is being investigated by the FBI’s San Francisco Division, the IRS-CI’s Washington D.C. Field Office Cyber Crimes Unit, and the Department of Homeland Security Office of the Inspector General.

Baltimore, Maryland – U.S. District Judge George L. Russell sentenced John Theis, age 40, of Sparrows Point, Maryland, today to 15 months in prison, followed by 1 year of supervised release for the receipt of illegal gratuities and impersonation of a United States officer.

The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Mark Tasky of the Department of Homeland Security (DHS), Office of Inspector General (OIG); Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Special Agent in Charge Kimberly Lappin of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.

According to his plea agreement, from January 2015 through his resignation in September 2015, Theis worked at the Department of Homeland Security, United States Citizenship & Immigration Services (USCIS) in Baltimore, Maryland. Theis was an Immigration Services Officer (ISO), whose duties and responsibilities included adjudicating immigration and citizenship cases and granting permanent residence status.

Theis was required to obtain approval for any outside employment and no such requests had been submitted by Theis seeking or gaining such approval.

From 2014 and through his departure from federal service, Theis accepted cash in return for promising favorable immigration adjudications for a number of aliens. On one occasion, while working at USCIS, Theis advised an alien on the documents needed for a green card approval. Additionally, Theis took photos of the applicant’s case file from a USCIS database. In exchange, Theis received approximately $500 from the alien applicant.

Beginning in December of 2014 through February 2015, Theis and a co-conspirator agreed to work together in an immigration business to assist immigrants with getting their paperwork approved through USCIS. Theis would do presentations at an immigration program known as Deferred Action for Parents of Americans and Lawful Permanent Residents (DAPA). There, Theis would wear clothes that identified him as an immigration officer in order to influence new clients into paying him for assistance with immigration paperwork.

In April 2015, Theis went on disability leave after making false statements about his ability to work. He also took various forms of paid leave and never returned to the USCIS.

On September 29, 2015, Theis resigned from government service and left for Brazil in October 2015. He continued to do immigration work in Brazil while holding himself out to be a special agent with Immigration and Customs Enforcement (ICE) until his return to the United States and arrest in December 2016.

The approximate value of gratuities Theis received was over $15,000. He also received over $1,600 in disability benefits to which he was not entitled. Judge Russell ordered Theis to pay $1,600 in restitution to the Department of Labor.

Acting United States Attorney Stephen M. Schenning commended DHS OIG, Immigration and Customs Enforcement, Office of Professional Responsibility, USCIS, FBI, and IRS for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Sandra Wilkinson and Paul E. Budlow, who prosecuted the case.

An Indian national and a Texas man each pleaded guilty to conspiracy charges this week for their respective roles in liquidating and laundering victim payments generated through a massive telephone impersonation fraud and money laundering scheme perpetrated by India-based call centers.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.

Montu Barot, 30, an Indian national most recently residing in Glendale Heights, Illinois, and Nilesh Pandya, 54, of Stafford, Texas, each pleaded guilty to one count of conspiracy to commit fraud and money laundering offenses, in violation of Title 18, U.S. Code, Section 371. The pleas were entered before U.S. District Court Judge David Hittner of the Southern District of Texas. Barot agreed to deportation following his sentence. Sentencing dates are pending.

According to admissions made in connection with their respective pleas, Montu Barot, Nilesh Pandya, and their co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams, in a ruse designed to defraud victims located throughout the U.S. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.

According to Barot’s guilty plea, beginning in or around June 2012, Barot served as a runner and coordinated the liquidation of victim scam funds by other runners per the instructions of conspirators from both India-based call centers and within the United States. Barot communicated via phone, text and email in furtherance of the criminal scheme with both domestic and India-based associates, and he and his conspirators used reloadable cards containing funds derived from victims by scam callers to purchase money orders and deposit them into various bank accounts as directed, in return for cash payments or commissions. Barot also admitted to sending financial ledgers to his conspirators detailing the movement of scam victim funds.

Based on admissions in Nilesh Pandya’s guilty plea, beginning in or around March 2014, Pandya served as a runner liquidating victim scam funds within the Southern District of Texas. At the direction of two of his co-defendants, Pandya used stored value cards that had been loaded with victim funds to buy money orders and then deposit them into various bank accounts.

To date, Montu Barot, Nilesh Pandya, 54 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Including this week’s pleas, a total of thirteen defendants have pleaded guilty thus far in this case. Co-defendants Bharatkumar Patel, Ashvinbhai Chaudhari, Harsh Patel, Nilam Parikh, Hardik Patel, Rajubhai Patel, Viraj Patel, Dilipkumar A. Patel, Fahad Ali, Bhavesh Patel and Asmitaben Patel previously pleaded guilty on various dates between April and July 2017.

The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection and Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration, Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorneys’ Offices in the Middle District of Alabama, Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.

Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case.

A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.

Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.

Five men, including two individuals who formerly worked at scam call centers in India, each pleaded guilty within the past two weeks for their respective roles in a massive telephone impersonation fraud and money laundering scheme perpetrated by India-based call centers.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.

From May 26 to June 6, Rajubhai Patel, 32, an Indian national most recently residing in Willowbrook, Illinois; Viraj Patel, 33, an Indian national most recently residing in Anaheim, California; Dilipkumar Ambal Patel, 53, an Indian national most recently residing in Corona, California; and Fahad Ali, 25, a Pakistani national and permanent U.S. resident most recently residing in Dyer, Indiana, each pleaded guilty to money laundering conspiracy before U.S. District Court Judge David Hittner of the Southern District of Texas. Hardik Patel, 31, an Indian national most recently residing in Arlington Heights, Illinois, pleaded guilty to wire fraud conspiracy before the same court on June 2. Sentencing dates are pending for all five defendants.

According to admissions made in connection with the plea agreements, the five men and their co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams, in a ruse designed to defraud victims in the U.S. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims, who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently obtained funds.

Based on the statements in his June 2 guilty plea, beginning in August 2012, Hardik Patel owned and managed the day-to-day operations of an India-based scam call center before later leaving for the U.S. While in India, in his capacity as a manager, Hardik Patel communicated extensively via email, text, and other means with various India-based co-defendants to operate the scheme and exchange scripts used in the scheme, coordinate the processing of payments from scammed victims, obtain and exchange lead lists used by callers to target U.S. victims, and exchange spreadsheets containing the personal identifying information (PII) of U.S. persons misappropriated by the scammers to register reloadable cards used in the scheme. Hardik Patel also managed worker payroll and kept detailed records of profits and expenses for various associated scam call centers. Hardik Patel continued to communicate with India-based co-defendants about the scheme and assist with the conspiracy after he moved to the U.S. 

According to his June 6 guilty plea, Rajubhai Patel operated as a runner and assisted a co-defendant in managing the activities of a crew of other runners, based primarily out of Illinois, who liquidated victim funds in various locales in the U.S. for conspirators from India-based call centers. Rajubhai Patel communicated about the liquidation of scam funds via electronic WhatsApp communications with domestic and India-based co-defendants, purchased reloadable cards registered using the misappropriated PII of U.S. citizens that were later used to receive victims’ funds, and used those cards to purchase money orders and deposit them into various bank accounts of co-defendants and others as directed. Rajubhai Patel also admitted to creating and maintaining spreadsheets that detailed deposits, payments to co-conspirators, expenses and profits from the scheme.

According to admissions made in his June 2 guilty plea, Viraj Patel first became involved in the conspiracy between April and September 2013, prior to entering the U.S., when he worked at and assisted with overseeing the operations of a call center in India engaging in scam activity at the behest of a co-defendant. After entering the U.S., beginning in December 2014 Viraj Patel engaged in additional activities in support of the scheme in exchange for a cut of the profits, including serving as a processor of scam victim payments and as a runner engaging in the purchase and liquidation of cards loaded with victim scam funds. Viraj Patel communicated with various India-and U.S.-based co-defendants in furtherance of the conspiracy, and also obtained and circulated lead lists to his co-conspirators containing the PII of U.S. citizens for use by the call centers in targeting victims of the various fraud schemes and to register reloadable cards used to launder the proceeds of the schemes.  

Based on the admissions made in his May 26 guilty plea, since late 2013, Dilipkumar A. Patel operated as a runner in and around Southern California, along with other co-defendants based in the region. At the direction of India-based co-conspirators, often via electronic WhatsApp communications, Patel admitted to participating in the purchase of reloadable cards registered with the PII of U.S. citizens, and the subsequent liquidation of victim scam funds loaded to those cards by co-conspirators, while keeping a percentage of the victim funds on the cards for himself. 

According to his guilty plea, also on May 26, beginning in or around 2013, Fahad Ali worked as a member of a crew of runners operating in the Chicago, Illinois area, the Southern District of Texas and elsewhere throughout the country. Ali admitted that he first served as a driver for an Illinois-based co-defendant engaging in activities in furtherance of the conspiracy. Ali later operated at the direction of that co-defendant and others, via various means of communication, including text messages, to purchase reloadable cards, and then liquidate victim scam proceeds placed on those cards by India-based co-conspirators, in exchange for recurring payments. Ali also admitted to using false identification documents to receive wire transfers from victims of the fraud.

To date, Hardik Patel, Rajubhai Patel, Viraj Patel, Dilipkumar A. Patel, Fahad Ali, 51 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Including the most recent pleas, a total of nine defendants have pleaded guilty thus far in this case. Co-defendants Bharatkumar Patel, Ashvinbhai Chaudhari, Harsh Patel and Nilam Parikh previously pleaded guilty on April 13; April 26; May 11; and May 18, respectively.

The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and in Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection and Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration, Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorneys’ Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.

Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case.

A Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.

Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.

An Indian national pleaded guilty today to one count of conspiracy to commit money laundering for his role in liquidating and laundering victim payments generated through various telephone fraud and money laundering schemes via India-based call centers.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS OIG) made the announcement.

Ashvinbhai Chaudhari, 28, an Indian national who most recently resided in Austin, Texas, pleaded guilty before U.S. District Court Judge David Hittner of the Southern District of Texas. Sentencing is currently set for July 21, 2017.

According to admissions made in connection with the plea, Chaudhari and his co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS or U.S. Citizenship and Immigration Services in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money, and upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.

According to his plea, since in or about April 2014, Chaudhari worked as a member of a crew of runners operating in Illinois, Georgia, Nevada, Texas and elsewhere throughout the country. At the direction of both U.S. and India-based co-conspirators, often via electronic WhatsApp text communications, Chaudhari admitted to driving around the country with other runners to purchase reloadable cards registered with misappropriated personal identifying information of U.S. citizens. Once victim scam proceeds were loaded onto those cards, Chaudhari admitted that he liquidated the proceeds on the cards and transferred the funds into money orders for deposit into various bank accounts while keeping a percentage of the victim funds for himself. Chaudhari also admitted to shipping money orders purchased with victim funds to other U.S. based co-conspirators, receiving fake identification documents from an India-based co-conspirator and using those documents to receive victim scam payments via wire transfers.

To date, Chaudhari, 55 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Chaudhari is the second defendant thus far to plead guilty in this case.

The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support was the Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration - Office of Inspector General; IOC-2; INTERPOL Washington; U.S. Citizenship and Immigration Services (USCIS); U.S. State Department’s Diplomatic Security Service; and U.S. Attorney’s Offices in Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.

Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case.

A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.

Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.

ALEXANDRIA, Va. – ThunderCat Technology, LLC, located in Reston, has agreed to pay $1 million to settle civil False Claims Act, Anti-Kickback Act, and Procurement Integrity Act claims relating to bid rigging and kickback schemes in connection with six government procurements.

The settlement resolves civil claims against ThunderCat relating to the criminal pleas entered by ThunderCat principal, co-owner, and general manager, Edwin Keith McMeans, and ThunderCat sales representative, Anthony Bilby.  From September 2008 to February 2012, ThunderCat solicited or submitted inflated third party bids or “loser bids” during competitions for five government contracts and/or purchase orders awarded by the Department of Homeland Security (DHS) on behalf of the U.S. Customs and Border Protection (CBP) and U.S. Citizenship and Immigration Services and one government contract awarded by the General Services Administration (GSA).  In connection with one CBP contract, ThunderCat agreed to pay CPB employees 10 percent of ThunderCat’s profits on the contract in exchange for procurement sensitive independent government cost estimates prior to ThunderCat’s submission of its proposal.

The resolutions obtained in this matter were the result of a coordinated effort between the Civil and Criminal Divisions of the U.S. Attorney's Office for the Eastern District of Virginia, and the Offices of Inspector General for DHS and GSA.

The civil matter was investigated by Assistant U.S. Attorney Christine Roushdy.  The civil claims settled by this False Claims Act, Anti-Kickback Act, and Procurement Integrity Act agreement are allegations only; there has been no determination of civil liability.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Criminal Case No. 1:15-cr-264 (Edwin Keith McMeans) and No. 1:13-cr-466 (Anthony Bilby).

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.