Montreal Boiler Room Telemarketer Sentenced to 41 Months for "Grandparent Scam" Calls to U.S. Seniors

The bottom line: a grandparent scam is a telemarketing crime. It depends on lead sheets, phones and a script, and prosecutors pursue the callers across borders.

Background

Kirstein pleaded guilty in November 2019 to one count of wire fraud after being extradited from Canada in January 2019. He admitted that he and co-conspirators called elderly U.S. victims and pretended to be a grandchild or other relative in distress in a foreign country.

According to the DOJ:

• Frightened victims wired money through Western Union or MoneyGram, naming the grandchild, another relative or a purported lawyer as the recipient.
• The scammers converted the funds to cash as quickly as possible before victims discovered the fraud.
• Sometimes they called victims again for more money, claiming the relative needed more to resolve the problem.

Prosecutors wrote in their sentencing memorandum that the scheme "involved threats of violence when victims did not cooperate."

The boiler room

In 2012, Canadian law enforcement searched a Montreal apartment and found a fully operating telemarketing boiler room, a large amount of cash and a money counting machine. According to the DOJ, the rooms were strewn with lead sheets, burner phones and calling cards. The bathroom had been set up as an office, with a chair in front of the sink.

The case

A federal grand jury charged Kirstein and four other Canadian nationals in July 2013 in a 25-count wire fraud indictment. Co-conspirators Agiyl Kamaldin, Mark El Bernachawy and Kelen Magael Buchan pleaded guilty and received prison sentences after being extradited with Kirstein. A fifth defendant, Peter Iacino, was a fugitive.

The Federal Bureau of Investigation (FBI), the U.S. Secret Service and the Royal Canadian Mounted Police investigated. The Federal Trade Commission (FTC) provided substantial assistance. The U.S. Attorney's Office in Los Angeles was part of the DOJ's Transnational Elder Fraud Strike Force.

Why it matters

The case took years. The search was in 2012, the indictment in 2013, the extradition in 2019 and the sentence in 2020. Elder fraud prosecutions are not abandoned because callers are outside the country.

For legitimate callers, the case is a reminder of why consumers and carriers are wary of unexpected calls about family emergencies and urgent payments.

What this means for you

1. Never use urgency, fear or impersonation in any outbound call.
2. Never direct consumers to wire money to individuals.
3. Do not call back consumers to request more money on a changing story.
4. Report suspected grandparent scam traffic to law enforcement.

Emergency scripts aimed at seniors are a prosecutorial priority.