Nine charged in $20 million internet fraud scheme
- Nine defendants from Tennessee, Texas, and Missouri were indicted for money laundering linked to internet fraud.
- The organization allegedly laundered $20 million using sham companies and recruited 'money mules'.
- This case highlights the ongoing efforts of federal authorities to combat internet fraud and money laundering.
In the United States, nine individuals have been indicted for their involvement in a multi-state money laundering operation that allegedly handled approximately $20 million from internet fraud. The indictments were unsealed by the Department of Justice on November 28, 2024, following a thorough investigation that began in November 2016. The defendants are from Tennessee, Texas, and Missouri and were charged with conspiracy to engage in money laundering, using front and sham companies to disguise the illicit financial activities. The alleged conspiracy involved participants known as 'herders' who recruited 'money mules' to facilitate the laundering process. This operation targeted both businesses and individuals in the U.S. and internationally, showcasing the global nature of internet fraud today. The FBI's forensic accountants and field offices played critical roles in uncovering this organization, indicating the seriousness of the threat posed by such criminal enterprises to the economy and individual financial safety. Led by Assistant U.S. Attorney S. Carran Daughtrey and trial attorneys Kenneth Kaplan and Jasmin Salehi Fashami, the legal proceedings are expected to highlight the extensive network of fraud and the steps taken by federal agencies to combat internet-related crimes. Each defendant faces significant prison time, up to 20 years, if found guilty in the federal court located in Middle Tennessee. The coordinated takedown of this fraud ring emphasizes the importance of collaboration among law enforcement agencies across multiple states in addressing complex economic crimes. As the legal process unfolds, it will expose the methods these individuals employed to exploit victims and conduct their fraudulent activities. The indictment serves as a stern warning to others involved in similar schemes, as authorities ramp up efforts to identify and prosecute those who engage in fraud and money laundering, reflecting a growing commitment to protecting citizens from financial crimes.