Five individuals from the Dominican Republic have been extradited to New Jersey in connection with a widespread “grandparent scam” that defrauded hundreds of elderly Americans out of millions of dollars. A Bronx man has also been arrested for his involvement in the fraudulent scheme, which has led to charges against 17 people.
The U.S. Department of Justice (DOJ) announced the extradition of Juan Rafael Parra Arias, 41, Miguel Angel Vasquez, 24, and Jose Ismael Dilone Rodriguez, 34, on August 5. Two other suspects, Rafael Rodriguez Guzman, 59, and Felix Reynoso Ventura, 37, were extradited in July. All five men face charges of mail and wire fraud conspiracy, wire fraud, mail fraud, and conspiracy to commit money laundering.
Authorities allege that 11 of the accused operated a call center in the Dominican Republic, where they posed as the victims’ children, grandchildren, or other close relatives to extort money. Six others in New York acted as couriers, collecting the money from the unsuspecting victims who believed they were helping family members in distress.
How the Scam Worked
According to the indictment, the call center “openers” used technology to make their calls appear to come from within the United States. They would typically inform the victims that their grandchild had been in a car accident, arrested, and in urgent need of bail money.
Once the victims were convinced, other team members, known as “closers,” would pose as lawyers, police officers, or court personnel to further manipulate the victims into sending large sums of cash.
In some cases, couriers would collect the money directly from the victims’ homes, or victims were instructed to send it to a specific address.
“These fraudsters targeted our vulnerable senior population. They preyed on the love and devotion grandparents have for their families, convincing them to hand over their savings to help loved ones in distress. My office will relentlessly prosecute those who exploit the vulnerable to cheat them out of their money,” said Philip R. Sellinger, U.S. Attorney for the District of New Jersey.
Widespread Devastation for Victims
HSI Special Agent in Charge Darren B. McCormack condemned the heartlessness of the criminals involved.
“For their own selfish gain, these accused individuals threatened innocent Americans’ livelihoods and robbed them of their precious time and any nest eggs they had secured for themselves,” he said.
McCormack emphasized the need for awareness to prevent such crimes, stating, “This can truly happen to anybody. While we will always be there to assist victims, we hope that raising awareness will give these criminal opportunists fewer chances to target the public.”
Authorities Warn of the Growing Threat
The scammers’ greed, officials say, knew no bounds.
“These defendants and their co-conspirators are accused of heartlessly robbing countless elderly victims of their precious time and often their life savings – all from more than 1,500 miles away. But their merciless greed is no match for the dedication of HSI New York’s El Dorado Task Force, its Cyber Intrusion Group, and the greater law enforcement community,” said Ivan J. Arvelo, former HSI Special Agent in Charge.
The DOJ has identified the remaining six suspects facing charges: Nefy Parra Arias, Nelson Gonzalez Acevedo, Miguel Fortuna Solano, Carlos Javier Estevez, Louis Rodriguez Serrano, and Jovanni Rosario Garcia. They, along with the extradited individuals, face maximum penalties of 20 years in prison and fines of up to $500,000 for money laundering conspiracy.
Victims Urged to Report Crimes
The DOJ is encouraging anyone who has experienced financial fraud to report it to the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). Case managers are available to assist victims and connect them with appropriate agencies.
“Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses,” the DOJ advised.
The hotline operates on weekdays from 10 a.m. to 6 p.m. Eastern Time and is available in English, Spanish, and other languages.
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Protecting the Elderly from Scams
This case highlights the increasing risk of financial fraud targeting seniors.
“These crimes are truly depraved in their nature. They target our parents and grandparents, aunts and uncles, and others in an elaborate venture to bilk them of their hard-earned savings,” said New York Police Department Commissioner Edward A. Caban.
Acting Special Agent in Charge Bradley Parker of the Social Security Administration’s Office of Inspector General called the scam “a cruel fraud scheme that deliberately preys on elderly and vulnerable persons within society.”
Officials continue to remind the public to stay vigilant against these types of scams and to take advantage of resources like the DOJ’s Elder Justice Initiative webpage and the Consumer Protection Branch website. Complaints of elder fraud can be filed with the Federal Trade Commission at www.reportfraud.ftc.gov or by calling 877-FTC-HELP.
If you have been victimized, do not be afraid to report it. As U.S. Attorney Sellinger stated, “My office will protect the rights of all victims, and we will relentlessly prosecute those who target the vulnerable to cheat them out of their savings.”