Twenty-five individuals from Canada have been charged with defrauding numerous American senior citizens out of over $21 million through a scheme commonly referred to as a “grandparent scam,” as announced by federal prosecutors on Tuesday.
The United States Attorney’s Office for the District of Vermont stated that the accused were indicted by a federal grand jury in late February.
The defendants, whose ages range from their late twenties to mid-forties, are predominantly located in the province of Quebec, which includes Montreal. The announcement provided their names along with the aliases they employed, such as Muscles, Elvis, Blondie, Happy, Honda, and Toast.
All 25 individuals face charges of conspiracy to commit fraud, with five of them additionally charged with conspiracy to engage in money laundering.
Details regarding the defendants’ legal representation and upcoming court appearances were not immediately accessible, and the U.S. Attorney’s Office for the District of Vermont refrained from providing further comments as the investigation is still active.
Prosecutors allege that the fraudulent operation, which began in the summer of 2021, specifically targeted elderly victims across 46 states.
“These individuals are accused of orchestrating a complex scheme that exploited fear to extort millions from victims who believed they were assisting relatives in distress,” stated Michael Krol, special agent in charge for Homeland Security Investigations in New England.
The individuals involved reportedly targeted elderly Americans by utilizing spreadsheets containing their personal details, such as age and household income. They would impersonate a family member, often a grandchild, claiming to require financial assistance for bail following a car accident.
These perpetrators would deceitfully assert that a “gag order” prohibited the victim from informing other relatives about the situation. Subsequently, they would transfer the call to another accomplice, who pretended to be an attorney representing the distressed relative.
Victims were convinced to provide funds to another person who visited their residences—primarily in New York City, Chicago, and other areas—posing as a bail bondsman, or in some instances, they were instructed to send money via mail. Prosecutors allege that the funds were subsequently sent to the suspects in Canada, often utilizing cryptocurrency to facilitate the transactions.
“The nature of these transactions concealed the origins of the funds and the identities of the co-conspirators who collected and managed the money, as well as financed the operational costs of the Grandparent Scam,” the indictment states.
Some victims were reportedly targeted multiple times, with suspects returning to inform them that the bail amount had risen and additional funds were required. Those victims who contributed significant sums were referred to as “whales,” according to the indictment.
In total, prosecutors assert that this scheme defrauded hundreds of elderly individuals across the United States until early June 2024, when Canadian law enforcement executed search warrants at the call centers involved.