- Twenty-five Canadians face charges linked to defrauding American retirees out of $21 million over a three-year period in what authorities dub a “grandparent scam.” Law enforcement said that the suspects sat in call centers in Montreal and targeted older Americans in an operation that had been active since 2021.
- The U.S. Attorney’s Office in Vermont announced on Tuesday that the 25 Canadian nationals are charged with conspiring to defraud people across 45 states.
- Prosecutors said the call centers used in the scam were run by five Canadians who were charged with money laundering, in addition to the conspiracy charge.
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Twenty-five Canadians face charges linked to defrauding American retirees out of $21 million over a three-year period in what authorities dub a “grandparent scam.”
Where were the operation’s headquarters?
Law enforcement said the suspects sat in call centers in Montreal and targeted older Americans in an operation that had been active since 2021.
What are the charges the defendants face?
The U.S. Attorney’s Office in Vermont announced on Tuesday, March 4, that the 25 Canadian nationals are charged with conspiring to defraud people across 45 states.
Prosecutors said the call centers used in the scam were run by five Canadians who were charged with money laundering in addition to the conspiracy charge.
Out of those charged, 23 of the 25 individuals were arrested in Canada on Tuesday, while the two others remain on the loose.
What is the “grandparent scam?”
Prosecutors said the defendants often used the “grandparent scam” to swindle money from victims.
Scammers told the grandparents that their grandchild had crashed their vehicle, being arrested. They then urged the victim to send thousands of dollars to bail their grandchild out of jail, according to prosecutors.
Officials said that the scammers would claim the case was under a gag order and told the victims they were barred from telling anyone about the request for money.
After the victims sent the money through various methods, the money was wired to Canada, with some transactions coming through cryptocurrency, according to authorities.
For now, it’s unclear how much money individuals lost in the scams.
How long could potential sentences be for the defendants?
If convicted, the five alleged managers of the call center face up to 40 years in prison, while the other defendants could be sentenced to up to 20 years behind bars.
What are federal agencies saying?
The FBI warned scams targeting grandparents are common.
The head of the IRS Criminal Investigation Division said the defendants are part of a “transnational criminal enterprise with the sole intent of defrauding hundreds of retirees of their life savings by preying on their emotions.”
