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Red Flags: Tips to Avoid Contractor Fraud 

By
Bola Akinloye
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0

Seniors are often an attractive target for fraudsters attempting to steal a lifetime of savings, and scammers are skilled at deceiving people.

Consumers are urged to stay vigilant and avoid making quick decisions before doing research or getting to know someone. If you think you or someone you know could be a fraud victim, call your financial institution immediately and report suspected fraud to the authorities.

Red flags for contractor fraud: 

  • The contractor knocks on your door looking for business because they are “in the area” and uses aggressive sales tactics. 
  • The contractor pressures you to make an immediate hiring decision. 
  • The contractor accepts only cash as payment and demands full payment before starting any work. 
  • The contractor claims to have materials left over from a previous job in the sales pitch.

Tips to avoid contractor fraud: 

  • Always get multiple estimates for any work you want done. 
  • Ensure contractors are licensed and insured. Look them up at Washington State’s Department of Labor & Industries website at https://secure.lni.wa.gov/verify/ 
  • Check with consumer protection agencies such as the Better Business Bureau and the Federal Trade Commission to search for complaints against a contractor.
  • Conspiracy to commit Wire fraud is punishable by up to 20 years in prison.

Two Ireland Nationals, Patrick McDonagh, Matthew McDonagh Charged with Wire Fraud for Stealing from Elderly Homeowners

By
Shulammite Bello
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Two individuals from Ireland are charged in U.S. District Court in Seattle with conspiracy to commit wire fraud for their theft of more than $400,000 from a Shoreline, Washington, homeowner. 

U.S. Customs and Border Protection arrested Patrick McDonagh and Matthew McDonagh in mid-June and have been held at the immigration detention centre. They have been transferred to the Federal Detention Center at SeaTac and will make their first appearance on the criminal charge today at 2:00 PM.

According to the criminal complaint, the pair was part of a group that travelled the country allegedly scamming homeowners – especially the elderly – by falsely representing the home needed an urgent repair.  One older homeowner in the Shoreline neighbourhood north of Seattle lost about $435,000 to the scheme.

“This type of fraud on our elderly neighbours is heartbreaking,” said U.S. Attorney Tessa M. Gorman. “To pose as someone trying to help them, while all the while the goal is to steal as much as they can from the victim’s hard-earned retirement funds.  It is a special kind of cruelty to engage in such conduct.”

The men first approached the victim in January 2024, claimed they were working in the neighbourhood and had noticed that the victim had a hole in his roof. The men offered to fix the hole and remove the moss from the roof.  Over the course of a few days, they pressured the victim to write them checks for their “services” of $15,000, $20,000, and $26,000.  They also claimed that the victim’s foundation was cracked, and they said they would repair that with a “titanium tie rod system.”

The roof had no hole, and the foundation was not failing. However, the men dug trenches and poured some concrete to make it appear work was done, and each day they pressured the victim to write more checks. They even demanded an extra $20,000 for “taxes.”

Ultimately, they demanded the victim wire $200,000 to a third party for building supplies – again, far in excess of any work they claimed to have done.  In all, the brothers stole $435,000 from the victim.

The FBI investigation connected the brothers to contractor fraud complaints in Washington County, Oregon and Spokane, Washington, totalling about $50,000.  In those cases, they used fake photos of holes in the homeowner’s roof or alleged problems with the house’s foundation or posed as local-reputable businesses.

“Sadly, seniors are often an attractive target for fraudsters attempting to steal a lifetime of savings, and scammers are skilled at deceiving people, said Richard A. Collodi, Special Agent in Charge of the FBI Seattle field office. “We encourage consumers to stay vigilant and avoid making quick decisions before doing research or getting to know someone. If you think you or someone you know could be a fraud victim, call your financial institution immediately and report suspected fraud to the FBI at tips.fbi.gov.”

FBI Extradites Former U.S. Banker Asante Kwaku Berko from UK for Bribing Ghanaian Officials

By
Shulammite Bello
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0

A dual citizen of the United States and Ghana will make his initial appearance today in the Eastern District of New York to face charges related to his participation in a scheme to bribe Ghanaian officials to obtain and retain business from the Republic of Ghana.

Asante Kwaku Berko, 50, was extradited yesterday from the United Kingdom to the United States.

According to court documents, between December 2014 and March 2017, Berko, an executive director in the Investment Banking Division of a wholly-owned subsidiary of a U.S. global investment banking, securities, and investment management firm, allegedly conspired with others in connection with a multi-year bribery and money laundering scheme.

During this time, Berko was a member of the firm team responsible for securing and managing a deal between its client, a Turkish energy company, and Ghana to build a power plant in Ghana and provide financing for the plant. Berko and others allegedly offered and paid more than $70,000 in bribes to government officials in Ghana in exchange for their assistance in ensuring that the Turkish energy company successfully won the bid to build and operate the power plant.

Berko is charged with one count of conspiring to violate the Foreign Corrupt Practices Act (FCPA), one count of violating the FCPA, and one count of conspiring to commit money laundering. If convicted, he faces a maximum penalty of 20 years for conspiring to commit money laundering and five years for each count of violating the FCPA and conspiring to violate the FCPA.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; and Executive Assistant Director Michael Nordwall of the FBI’s Criminal, Cyber, Response, and Services Branch made the announcement.

The FBI’s International Corruption Unit is investigating the case.

Court Orders West Virginia e-Cigarette Maker Soul Vapor LLC to Stop Selling Unauthorised Nicotine Vaping Products

By
Shulammite Bello
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0

A federal court on July 2 enjoined a West Virginia company and its owner from manufacturing, distributing or selling unauthorised nicotine vaping products.

In a complaint filed in the U.S. District Court for the Southern District of West Virginia, the government alleged that Soul Vapor LLC and the company’s owner, Aurelius Jeffrey, violated the Federal Food, Drug and Cosmetic Act (FDCA) by causing tobacco products to become adulterated or misbranded while they were held for sale after shipment of one or more of their components in interstate commerce.

According to the complaint, the defendants manufactured and sold finished electronic nicotine delivery systems (ENDS) products or e-cigarette products, including products under the Soul Vapor brand. The complaint alleged that the Food and Drug Administration (FDA) warned the defendants that their ENDS products were adulterated and misbranded.

The complaint also alleged that the defendants submitted materially false information to FDA. Under the FDCA, entities that manufacture tobacco products must annually register with the FDA. The government’s complaint alleged that the defendants falsely told the FDA in their registration form that the company was “inactive” and “out of business” even while it continued to manufacture ENDS products.

The complaint also alleged that Jeffrey told the FDA that he would discontinue manufacturing and selling Soul Vapor-brand ENDS products that lacked FDA authorization, yet the products remained for sale.

The court previously granted the government’s motion for summary judgment against the defendants, finding that the defendants violated the FDCA and submitted materially false information to the FDA. The order entered by the court permanently enjoins the defendants from directly or indirectly manufacturing, distributing, selling and offering for sale any new tobacco product that has not received marketing authorization from the FDA.

The court also ordered the defendants to destroy ENDS products manufactured by the defendants in their custody, control or possession.

The injunction against Soul Vapor is the most recent judicial enforcement action finalized since the Justice Department and FDA announced the creation of a federal multi-agency task force to combat the illegal distribution and sale of e-cigarettes. To date, the FDA has authorized the sale of 27 specific tobacco- and menthol-flavored e-cigarette products and devices. These are the only e-cigarette products that may be lawfully marketed and sold in the United States.

“Manufacturing and selling unauthorized vaping products is illegal and threatens public health,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work closely with the task force to bring enforcement actions against those who illegally manufacture, distribute or sell these dangerous products.”

“FDA has clearly outlined what manufacturers need to do to comply with the law, and we are committed to holding those who fail to do so accountable,” said Director Brian King, Ph.D., M.P.H. of the FDA’s Center for Tobacco Products. “FDA will continue to work with our federal partners to identify and bring enforcement actions against these bad actors.”

Colorado Couple Joshua Lybolt, Magdalena Lybolt Indicted for $5m Fraud Scheme

By
Bola Akinloye
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The United States Attorney’s Office for the District of Colorado announces that Joshua Lybolt, 45, and Magdalena Lybolt, 46, of Castle Rock, Colorado, were indicted by a federal grand jury in Colorado. Joshua Lybolt has been charged with wire fraud and money laundering, and Magdalena Lybolt has been charged with wire fraud.

According to the indictment, from April 2020 until around August 2022, Joshua Lybolt applied for and received $4,950,000 in COVID-19 Economic Injury Disaster Loans (EIDL) from the Small Business Administration (SBA) and $41,667 in Paycheck Protection Program (PPP) funds from an SBA-approved lender.

The indictment alleged that Joshua Lybolt falsely certified in fraudulent loan applications that the business entities suffered losses due to the COVID-19 pandemic despite knowing that the business entities were not in operation on the dates required to receive relief funds.

The indictment further alleged that Joshua Lybolt and Magdalena Lybolt falsely certified that all the loan proceeds would be used for business expenses when, in fact, they used the bulk of the proceeds for personal expenses, including a 2022 Porsche Taycan, a 2016 Land Rover Range Rover, memberships in a country club, a luxury vacation club, and real estate properties.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020 and was designed to provide emergency financial assistance to Americans dealing with the economic impact of the COVID-19 pandemic. 

The CARES Act created the PPP, a program administered by the SBA that provided loans to small businesses to retain workers, maintain payroll, and other expenses consistent with PPP rules.  Additionally, the CARES Act authorized the SBA to provide EIDLs to eligible small businesses experiencing substantial financial disruptions due to the COVID-19 pandemic.

The defendants appeared in Denver on July 11, 2024, in front of Magistrate Judge Scott T. Varholak.

The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.

The Federal Bureau of Investigation is investigating this case. Assistant United States Attorneys Theodore O’Brien and Craig Fansler is prosecuting the case.

FBI Arrests, Jails Recidivist Nigerian Money Launderer Toochukwu Michael Okorie; Joins Paulinus Ebhodaghe, Ohimai Asikhia in U.S. Prison

By
Olaoluwa Fabuyi
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0

A jury has convicted a recidivist money launderer from Pennsylvania for his role in an international money laundering conspiracy, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Carlton Peeples.

The jury returned a guilty verdict against Toochukwu Michael Okorie, 46, of Bristol, Pennsylvania, after three days of testimony and argument before U.S. District Court Judge L. Scott Coogler. Okorie was convicted of conspiracy to commit money laundering. Okorie had previously been convicted of wire fraud and money laundering in the Eastern District of Pennsylvania in 2011.

“This conviction shows that juries see through money launderers’ attempts to disguise the movement of fraud proceeds as legitimate business transactions,” U.S. Attorney Escalona said. “My office will continue to prosecute those who knowingly help move fraud proceeds, especially those who’ve been previously convicted of fraud and money laundering.”

“Individuals who engage in this type of illegal activity continue to refine and develop new ways to launder ill-gotten proceeds and play a significant role in the circle of criminal activity which continues to plague our communities,” said Special Agent in Charge Carlton Peeples of the Birmingham Division. “The FBI will continue to work with our law enforcement partners, the public and private sector, and communities to aggressively pursue those engaged in money laundering and hopes this sentence serves as a warning to others.” 

According to evidence presented at trial, from June 2017 through May 2019, Okorie helped launder hundreds of thousands of dollars in fraud proceeds through two front companies: TMO Consulting LLC and Collective Intelligence Forensics LLC. During the conspiracy, Okorie and his co-conspirators would receive wire transfers from business email compromise, romance scam, and other frauds—including from victims in the Northern District of Alabama.

Okorie and his co-conspirators would then move the fraud proceeds among bank accounts in an effort to disguise their origin and conceal their fraudulent nature. After paying themselves a commission, members of the conspiracy would ultimately wire the proceeds to bank accounts in Nigeria or use them to purchase automobiles that were shipped overseas.

U.S. District Court Judge Anna M. Manasco previously sentenced two other individuals involved in the money laundering conspiracy: On January 20, 2022, Paulinus Ebhodaghe, 40, of Clementon, New Jersey, was sentenced to 37 months in prison; and Ohimai Asikhia, 37, of Glassboro, New Jersey, was sentenced to 18 months in prison.

The maximum penalty for conspiracy to commit money laundering is 10 years in prison. 

The FBI investigated the case. Assistant U.S. Attorneys Edward J. Canter and John M. Hundscheid are prosecuting the case.

FBI Arrests Nigerian Olabanji Otufale, Marc Lazarre for Fraud, Stealing Identities of Homeless People

By
Olaoluwa Fabuyi
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0

Earlier Monday, in federal court in Brooklyn, Olabanji Otufale and Marc Lazarre pleaded guilty without a plea agreement to conspiracy to commit wire fraud and aggravated identity theft.

The proceeding was held before United States District Judge Kiyo A. Matsumoto. The defendants pleaded guilty as jury selection and trial was set to begin this morning. The defendants each face a maximum sentence of 32 years and a mandatory minimum sentence of two years.

Breon Peace, United States Attorney for the Eastern District of New York, Christie Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jocelyn Strauber, Commissioner, New York City Department of Investigation (DOI), announced the guilty pleas.

“The defendants shamefully stole vulnerable homeless victims’ personal identifying information for their own personal gain,” stated United States Attorney Breon Peace.  “Instead of investigating fraud, as the City of New York trusted Otufale to do, the defendants abused Otufale’s position and access to sensitive data to commit fraud.  That the defendants face a mandatory prison sentence of two years should serve as a deterrent message to others who think about corruptly stealing identities and taxpayer funds.”

“Leveraging his position within the New York City Department of Homeless Services, Olbanji Otufale stole homeless individuals’ personal information and enlisted a co-conspirator to use these sensitive details for his own financial benefit. The defendants’ actions exemplify the harmful abuses of power the FBI is dedicated to preventing, and we applaud the efforts of our office and the Department of Investigation in bringing about this verdict,” stated FBI Acting Assistant Director in Charge Curtis.

DOI Commissioner Jocelyn E. Strauber said, “These two defendants exploited the intended beneficiaries of public funds to steal those funds for their own gain. Unacceptable under any circumstances, this conduct is particularly troubling because one defendant, a City fraud investigator, had a duty to identify and prevent the very crimes in which he engaged, abusing his access and position of trust and authority. 

“I thank the United States Attorney’s Office for the Eastern District of New York and the FBI for their continued partnership in protecting public funds and holding accountable those who drain these precious resources for personal profit.”

As alleged in the indictment, court filings and statements made in court, in the fall of 2020, the defendants conspired to steal the personal identifying information of homeless individuals and use that stolen information to fraudulently apply for unemployment insurance benefits in the names of those homeless individuals without their knowledge or consent.

At the time of the scheme, Otufale was a fraud investigator with the New York City Department of Homeless Services. In that role, Otufale was responsible for ensuring individuals who applied for homeless services—such as housing in homeless shelters—were qualified to receive the New York City Department of Homeless services. 

Otufale, however, used his access to a Department of Homeless Services database to steal the personal identifying information—names, social security numbers, dates of birth—of vulnerable victims who had given that personal information to the Department of Homeless Services when they applied for social services. 

Otufale then texted this victim information to Lazarre, who applied online for unemployment benefits in the names of the homeless victims. Otufale and Lazarre conspired to split the fraudulent benefits they received. 

Canadian Man Ellis Kingsep Indicted, Arrested for 30-year Social Security Benefit Fraud Scheme

By
Olaoluwa Fabuyi
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0

A Canadian man was arrested in Los Angeles on July 8 after a federal grand jury in Alaska returned an indictment charging him with stealing over $420,000 of his mother’s Social Security benefits in a nearly 30-year complex fraud scheme.

According to court documents, beginning in roughly 1995, Ellis Kingsep, aka Ellis King, 77, allegedly created private postal mailbox accounts to hide that he was sending and receiving his mother’s mail. The defendant allegedly changed the mailing addresses for his mother every few years to a new address in California and eventually Vancouver, British Columbia, and Alaska.

In 2013, the Social Security Administration received a change of address notice signed by Kingsep’s mother, stating that she was moving to Alaska and requested her address be changed to one in Fairbanks. The address in Fairbanks was for a mail forwarding service that, allegedly per instructions from the defendant, would receive the mail in his mother’s name, repackage it in his name and ship it to two different private mailbox services located in Vancouver.

Those services, again allegedly per instructions from the defendant, would repackage and forward the mail to private mailbox services in Los Angeles, where Kingsep would regularly collect his mail. The indictment alleges that the mother’s name or information was not used for any private mailbox registrations. All registrations were done with Kingsep’s information and were in his name.

Beginning in 1996, the Social Security Administration made direct deposits of Social Security retirement benefits for Kingsep’s mother into a bank account different from the one previously used. The new account was held in the defendant’s and his mother’s names.

The Social Security Administration continued the direct deposits until 2023. Bank security video shows the defendant regularly withdrawing cash from the account in Los Angeles.

The indictment alleges that the defendant’s mother would be 102 at the time of the indictment and that there has been no record of her since 1993.

Kingsep is charged with five counts of mail fraud in violation of 18 U.S.C. §1341, one count of aggravated identity theft in violation of 18 U.S.C. §1028A and one count of social security fraud in violation of 18 U.S.C. §408(a)(3). The defendant made his initial court appearance on July 11 before the U.S. District Court for the Central District of California.

He is awaiting transport to Alaska by the U.S. Marshal’s Service. If convicted, he faces a mandatory sentence of two years in prison for aggravated identity theft, in addition to up to 20 years in prison for his other alleged crimes.

A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

North Berwick’s Frederick Avery, Former Owner of Superior Cruise and Travel LLC, Convicted of Bank Fraud

By
Shulammite Bello
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0

A North Berwick man pleaded guilty in U.S. District Court in Portland to filing fraudulent applications for loans from the Paycheck Protection Program (PPP).

According to court records, between April 2020 and September 2021, Frederick Avery, 49, submitted two applications for PPP loans that claimed he was the 100% owner of Superior Cruise and Travel LLC.

Avery sold the agency to a limited liability company in Pennsylvania in November 2019. He claimed on the applications that the loans totalling more than $215,000 were for payroll, lease/mortgage interest, utilities, and other items.

Avery submitted falsified bank statements from a non-existent account to support one of the applications.

Avery faces up to 30 years’ imprisonment and a maximum fine of $1 million, followed by up to five years of supervised release. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI investigated the case.

Tips to Remain Vigilant at Banks, ATM

By
Shulammite Bello
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0

The FBI urges the public to remain vigilant and keep the following safety tips in mind.

  • Be Aware of Your Surroundings: Always be vigilant when withdrawing or depositing money from a bank or ATM.
    • Look around for anyone who appears suspicious or is loitering in the area.
    • Pay attention to individuals backed into parking spaces who do not exit their vehicles to conduct business.
    • Don’t leave your car or the building if you observe suspicious vehicles in the parking lot or parked nearby.
  • Report any suspicious activities immediately.
  • Conceal Your Cash: When leaving the bank, ensure your cash is not visible. Place it in a secure, inconspicuous location such as a pocket or a bag.
  • Vary Your Routine: Avoid regular patterns in your banking habits. Change the times and locations you visit the bank.
  • Drive Directly to Your Next Destination: If you suspect you are being followed, drive to the nearest police station or a crowded, well-lit area, and call 911.
  • Avoid Distractions: Do not engage in activities that might distract you, such as using your phone, until you are in a safe place.

If you have any information related to recent bank jugging incidents, please contact the FBI at 1-800-CALL FBI or submit an anonymous tip through tips.FBI.gov.

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