A massive fraud scheme targeting senior citizens across the United States has led to more than 40 indictments and several arrests, including one in Newark, New Jersey.
Authorities say the operation stole about $250 million from more than 200 victims, many of them elderly Americans. Investigators say scammers contacted seniors and falsely claimed their bank accounts or investments had been compromised by hackers.
Victims were then instructed to withdraw their savings and purchase gold bars or cryptocurrency in order to supposedly protect their money. In some cases, people posing as federal agents arrived to collect the gold, telling victims it would be placed in secure government storage.
Instead, investigators say the gold was stolen, taken to a refinery in Florida and melted down or converted into other forms before proceeds were moved through cryptocurrency and shell companies.
Prosecutors identified Muzamil Ahmed, 35, of New Jersey, as a central figure in the alleged operation. He was arrested Sept. 3 at John F. Kennedy International Airport while preparing to board a flight to Saudi Arabia. Authorities say he operated from New Jersey and used shell corporations to help move money connected to the scheme.
Two additional suspects were arrested the same day, including one in Newark, as authorities continued a nationwide investigation. Prosecutors say more arrests may follow.
Authorities have reportedly seized more than $130 million in gold connected to the investigation.
The FBI warns that legitimate federal agents will not instruct people to hand over cash, gold or cryptocurrency for safekeeping.
The charges are allegations, and the defendants are presumed innocent unless proven guilty in court.
Sources: NJ.com; federal prosecutors; FBI
By NJ RADAR Team