The Justice Department has initiated a civil forfeiture action to recover approximately $5,315,746.29 in funds alleged to be proceeds from a business email compromise (BEC) scheme and property involved in laundering these proceeds.
According to the complaint, in January 2023, a workers union based in Dorchester, Massachusetts, was defrauded of $6.4 million after receiving a spoofed email that appeared to be from its investment manager. The email allegedly changed the beneficiary bank account for the $6.4 million payment, misleading the union into transferring funds to an unauthorized account.
The complaint further states that the fraudulently obtained funds were transferred through several intermediary bank accounts. Some of these funds were then moved or attempted to be moved to cryptocurrency exchanges or various bank accounts located in Hong Kong, China, Singapore, and Nigeria. Investigators traced the proceeds of the scheme to seven domestically held bank accounts, which were subsequently seized.
Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts; and Special Agent in Charge William Mancino of the U.S. Secret Service announced this development.
The U.S. Secret Service is investigating the case. Trial Attorneys Jasmin Salehi Fashami and Adrienne E. Rosen from the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Matthew Lyons for the District of Massachusetts are prosecuting the forfeiture.
A BEC scheme is a sophisticated fraud targeting businesses that use wire transfers as payment methods. These schemes affect global corporations, governments, and individuals with estimated daily global losses around $8 million. Criminals compromise legitimate business email accounts using hacking techniques such as social engineering and malware or create "spoofed" email domains to deceive recipients into making illicit fund transfers.
To avoid falling victim to a BEC scheme, it is advised to verify sender email addresses carefully before opening attachments or following instructions on mobile devices and never make payment changes without confirming with intended recipients by phone or in person.
If you suspect being targeted by a BEC scheme:
1) Contact your bank immediately to request a recall or reversal along with a Hold Harmless Letter or Letter of Indemnity.
2) File a detailed complaint with the Internet Crime Complaint Center at www.ic3.gov.
A civil forfeiture complaint is an allegation requiring proof by the United States that the funds are subject to forfeiture in legal proceedings.