Thirteen charged for running elder fraud ring targeting hundreds across United States

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Thirteen charged for running elder fraud ring targeting hundreds across United States

Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice

Federal authorities have charged thirteen people in connection with a transnational elder fraud scheme that targeted hundreds of elderly victims across the United States. The operation, allegedly based out of call centers in the Dominican Republic, resulted in more than $5 million in losses from over 400 victims, with at least 50 affected in Massachusetts. The average age of those targeted was 84.

According to charging documents, Oscar Manuel Castanos Garcia led the alleged operation by running call centers staffed with English-speaking co-conspirators. These individuals carried out so-called “grandparent scams,” where an initial caller would pretend to be a grandchild involved in an accident and later another caller would pose as an attorney requesting money for legal fees. "Castanos Garcia allegedly ran these call center locations with the help of several managers who allegedly supervised, instructed and paid the employees," the indictment states.

The scheme reportedly involved instructing elderly victims to provide cash to “runners” located within the United States. Callers often directed rideshare drivers—unaware of their role—to pick up packages containing cash from victims’ homes and deliver them to runners at other locations. In some instances, victims were told to ship cash via mail or commercial carriers.

The investigation also found that callers sometimes contacted victims multiple times seeking additional funds, citing reasons such as a supposed mix-up or a lost baby due to an accident. Co-conspirators occasionally ordered rideshare drivers to take elderly individuals to banks for further withdrawals.

Once obtained, victim funds were allegedly laundered through bank deposits and transfers both within the United States and internationally. Money launderers helped move proceeds from U.S.-based victims back to Castanos Garcia and associates in the Dominican Republic.

Authorities urge anyone who believes they may be a victim of this case or similar elder fraud scams to contact USAMA.VictimAssistance@usdoj.gov or call 1-800-CALL-FBI (1-800-225-5324). Reports can also be filed through the FBI’s IC3 Elder Fraud Complaint Center.

Potential penalties for conspiracy to commit mail fraud and wire fraud include up to 20 years imprisonment, three years supervised release, and fines up to $250,000 or twice the loss amount. Money laundering conspiracy charges carry similar prison terms but higher potential fines—up to $500,000 or twice the amount laundered.

"United States Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today." The investigation received support from agencies including the Justice Department’s Office of International Affairs; Dominican National Police; División Especial de Investigación del Crimen Organizado Internacional (DEICROI); Central de Investigaciones Criminales (DICRIM); and Ministerio Publico. Assistant U.S. Attorney David M. Holcomb is prosecuting.

"The details contained in the charging documents are allegations," officials emphasized. "The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law."

The list of defendants includes Oscar Manuel Castanos Garcia along with Joel Jose Cruz Rodriguez (“Paflow”), Edward Jose Puello Garcia, Joan Manuel Mathilda Leon, Luis German Santos Burgos (“Mambo Flow”), Gerardo Heriberto Nuñez Nuñez, Ransel St Arlin Tavarez Jimenez, Joel Francisco Mathilda Leon, Andry Joel Baez Santana, Jose Osvaldo Polanco Batista (“Obbi”), Chaman Samael Silverio Balbuena (“Chammy”), Manuel Nicolas Rivera Cueto, and Jose Arony Fermin Vasquez (“Chiky”). Several remain at large while others are currently in custody.