Two residents of Santiago de los Caballeros, Dominican Republic, were extradited to the United States last week and made their initial appearance in Newark federal court yesterday on charges related to their participation in a sprawling “grandparent scam” that defrauded elderly Americans out of millions of dollars.
Rafael Ambiorix Rodriguez Guzman, also known as Max Morgan, 59, and Felix Samuel Reynoso Ventura, also known as Fili and Filly The Kid, 37, are among 11 Dominican Nationals charged in a 19-count indictment filed in the U.S. District Court for the District of New Jersey that was unsealed on April 29. Following their initial appearance yesterday, the court ordered both men detained pending trial.
According to the indictment, Rodriguez Guzman, Reynoso Ventura and their co-conspirators engaged in a long-running “grandparent” or “family in need of bail” scam against hundreds of seniors across the United States, including in New Jersey, New York, Pennsylvania and Massachusetts. Both Rodriguez Guzman and Reynoso Ventura are alleged to have worked in the call centers in the Dominican Republic from which the scam operated, where they phoned elderly Americans and sought to steal their money.
As detailed in court filings, members of the conspiracy referred to as “openers” called elderly victims in the United States and impersonated the victims’ children, grandchildren or other close relatives. The call centers used technology to make it appear that the calls were coming from inside the United States. Typically, the victim was told that their grandchild had been in a car accident, was arrested in connection with an accident and needed help.
Once openers tricked victims into believing their loved ones were in dire trouble, others working at the call centers, known as “closers”—including Rodriguez Guzman and Reynoso Ventura—allegedly impersonated defense attorneys, police officers or court personnel and convinced victims to provide thousands of dollars in cash to help their loved ones. The cash was typically retrieved by couriers sent to the victims’ homes or mailed by victims at the direction of the closers.
Rodriguez Guzman and Reynoso Ventura each face multiple charges including mail and wire fraud conspiracy; wire fraud; mail fraud; and conspiracy to commit money laundering. If convicted, they each face a maximum penalty of 20 years in prison for each count; a maximum fine of $250,000 for each count of mail and wire fraud charges; and a maximum fine of $500,000 for money laundering conspiracy.
“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue criminals who defraud victims through so-called ‘grandparent scams,’” said Principal Deputy Assistant Attorney General Brian M. Boynton. “We will continue to identify perpetrators of these schemes and prioritize pursuing those who deliberately target vulnerable Americans from abroad. We thank the government of the Dominican Republic for extraditing these defendants.”
“As alleged,” said U.S. Attorney Philip R. Sellinger for New Jersey District Court,“these two defendants played a role in a scheme that relied on love and devotion of elderly victims to cheat them out of millions.” He added that conspirators like Rodriguez Guzman and Reynoso Ventura allegedly impersonated various authorities convincing panic-stricken grandparents often did pay up.
“These defendants are accused,” said Special Agent Ivan J. Arvelo HSI New York,"of heartlessly robbing countless elderly victims... all from more than 1,500 miles away." He commended HSI's El Dorado Task Force alongside global partners' commitment towards public safety.
Bradley Parker SSA-OIG Boston Field Division remarked,"The grandparent scam is cruel... perpetrators often cowardly operating offshore cause extreme emotional financial harm." SSA OIG joined HSI FBI Justice Department NYPD investigating complex international scams defrauding SSA beneficiaries appreciating U.S Marshals Service diligence facilitating extradition."
Commissioner Edward A Caban NYPD stated,"We are now one step closer holding accountable alleged fraudsters exploiting hundreds elderly Americans.” Commending investigators' dedication stressing extensive reach unwavering commitment delivering justice."
HSI SSA-OIG NYPD FBI investigated case Justice Department Office International Affairs assisted arrest extradition Dominican Republic significant cooperation acknowledged U.S Marshals Service critical support Dominican government pursuant treaty securing defendants' return prosecution.
Trial Attorneys Jason Feldman Joshua Ferrentino Emily Powers Civil Division Consumer Protection Branch Assistant U.S Attorney Carolyn Silane District Jersey prosecuting case.
For elder financial fraud assistance National Elder Fraud Hotline available at 1-833-FRAUD-11 managed by Office Victims Crime providing personalized support assessing needs identifying relevant next steps connecting reporting agencies resources referrals increasing likelihood recovering losses open Monday-Friday 10:00 am -6:00 pm ET languages available more information department efforts Elder Justice Initiative webpage consumer protection branch enforcement visit www.justice.gov/civil/consumer-protection-branch elder fraud complaints FTC www.reportfraud.ftc.gov/877-FTC-HELP department provides resources relating elder fraud victimization Office Victims Crime www.ovc.gov
An indictment is merely an allegation All defendants presumed innocent until proven guilty beyond reasonable doubt court law.
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