Eight Sentenced in Georgia for Laundering Money From IRS Imposter and Fake Payday Loan Calls

The takeaway: U.S.-based participants who convert victims' payments into cash and wire transfers are prosecuted right alongside the overseas callers.

Here is what happened

According to the U.S. Attorney's Office for the Northern District of Georgia, part of the Department of Justice (DOJ), the scheme was organized by co-conspirators in India, including a network of call centers in Ahmedabad.

1. Using information from data brokers and other sources, call center operators called potential victims while impersonating IRS officials or offering fictitious payday loans.
2. The callers threatened victims with arrest, imprisonment, or fines unless they paid taxes or penalties.
3. When victims agreed, the call centers turned to U.S.-based co-conspirators to liquidate and launder the money, by buying prepaid debit cards or through wire transfers, including through MoneyGram and Western Union, sent to fictitious names and U.S.-based defendants.

The sentences

U.S. District Judge Michael L. Brown sentenced:

1. Mohamed Kazim Momin, 33, of Norcross, Georgia, to four years and nine months, with restitution to be determined.
2. Rodrigo Leon-Castillo, 46, of Katy, Texas, to four years and three months, with $833,938.20 in restitution.
3. Mohmed Sozab Momin, 23, of Lawrenceville, Georgia, to two years and six months, with restitution to be determined.
4. Drue Kyle Riggins, 24, of Stone Mountain, Georgia, to one year and one month, with $49,640.36 in restitution.
5. Nicholas Alexander Deane, 26, of Tucker, Georgia, to one year and one day, with $49,640.36 in restitution.
6. Palak Kumar Patel, 30, of Clarkston, Georgia, to ten months, with $19,142.60 in restitution.
7. Jantz Parrish Miller, 25, of Stone Mountain, Georgia, to eight months, with $49,640.36 in restitution.
8. Devin Bradford Pope, 25, of Chamblee, Georgia, to six months, with $49,640.36 in restitution.

Each was also sentenced to three years of supervised release. The eight were charged with five Indian call centers and seven Indian nationals in a 27-count indictment for conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. The government stated it was seeking extradition of the Indian nationals.

The Treasury Inspector General for Tax Administration (TIGTA) commented on the case. The U.S. Attorney's Office is part of the DOJ's Transnational Elder Fraud Strike Force.

Why it matters

The case shows the two supply lines these schemes rely on. The first is data. The callers used information from data brokers and other sources to choose whom to call. The second is money movement. Prepaid cards and wire services converted victims' payments into funds the overseas organizers could use.

Both are areas where legitimate businesses can reduce harm. Data sellers can control who buys consumer contact lists. Money services businesses can watch for repeated transfers to the same recipients under different names.

What this means for you

1. Data brokers and list sellers should vet buyers and the purposes for which they buy consumer data.
2. Money services businesses should monitor for patterns consistent with imposter scams, such as urgent transfers by elderly customers to unfamiliar recipients.
3. Carriers should watch for high-volume government impersonation traffic from foreign sources.
4. Remind customers that the IRS does not demand immediate payment by prepaid card or wire transfer, or threaten arrest by phone.

The IRS does not call to threaten arrest. Every business that hears from a frightened customer can help make that point clear.