Rebecca C. Lutzko United States Attorney for the Northern District of Ohio | U.S. Attorney for the Northern District of Ohio
The final defendant in a transnational money laundering case connected to a “phantom hacker” fraud scheme has been sentenced in federal court. Kishan Vinayak Patel, 26, an Indian national, received a prison sentence of 46 months after being convicted by a federal jury for his role in the conspiracy. Co-defendant Pranay Kumar Mamidi, 27, also from India, was previously sentenced to five years following his conviction for money laundering conspiracy. Both were ordered, along with six other defendants, to pay nearly $4 million in restitution.
Other defendants who pleaded guilty and were sentenced include Dileep Kumar Sakineni (72 months), Balaji Rakesh Mulpuri (27 months), Avi Jitendrakumar Patel (33 months), Sai Hruthik Thodeti (24 months), and Srinivas Ravi Valluru (60 months). Hiren Jagdishbhai Patel of Columbus, Ohio, was sentenced to 39 months.
“These individuals stopped at nothing to purposely confuse their victims and used scare tactics to bully and coerce them into unknowingly handing over their life savings. This coordinated effort to steal from hardworking Americans is over,” said United States Attorney David M. Toepfer for the Northern District of Ohio. “To those who take advantage of others—and then launder their money on behalf of transnational criminal organizations—know that your callous actions will have consequences. We thank our partners with FBI Cleveland who conducted the investigation as their role was vital in bringing these individuals to justice.”
“Targeting victims and knowingly siphoning their life savings is reprehensible,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “The FBI is focused on defending the homeland and protecting the American public from conniving criminals, such as Kishan Patel and his associates, who preyed on their victims through coercion and scare tactics. The FBI will continue to aggressively identify and investigate those who engage in money laundering schemes, whether domestically or globally, with an intent to harm Americans.”
Court documents show that between May and November 2023, the group laundered proceeds from scams known as “phantom hacker” schemes. These scams involve fraudsters posing as bank employees or law enforcement agents convincing victims—often elderly—that their accounts are compromised or under investigation. Victims are pressured into transferring funds under false pretenses; those funds are then distributed among members of the laundering operation.
In many cases, scammers claimed suspicious activity on Amazon accounts or posed as officials from agencies like the U.S. Federal Trade Commission or Drug Enforcement Administration. Victims were told they faced arrest unless they handed over cash or gold bars at designated locations.
Investigators estimate that tens of millions of dollars were laundered through this network operating out of India but supported by infrastructure within the United States.
The case was investigated by the FBI Cleveland Division and prosecuted by Assistant United States Attorneys Robert Melching and Dexter L. Phillips for the Northern District of Ohio.
This prosecution is part of efforts under the Elder Justice Initiative Program established by the Elder Abuse Prevention and Prosecution Act of 2017 (EAPPA), which aims to combat elder abuse and financial fraud targeting older adults.
Anyone suspecting elder fraud can contact the National Elder Fraud Hotline at 1-833-FRAUD-11 or visit IC3.gov for more information.
