Michael P. Drescher Acting United States Attorney for the District of Vermont | U.S. Attorney for the District of Vermont
Otmane Khalladi, a 33-year-old resident of Miami, Florida, has been charged by a federal grand jury with conspiracy to commit wire fraud, conspiracy to launder monetary instruments, and failure to appear in court. The charges stem from his alleged involvement in a "grandparent scam" and the laundering of proceeds from that scheme.
Khalladi pleaded not guilty to the charges during an arraignment before United States Magistrate Judge Kevin J. Doyle on February 13, 2026. Judge Doyle ordered Khalladi to remain in detention while the case is pending.
Court records indicate that Khalladi was first arrested in Miami in April 2023 and released on a $100,000 bond. He failed to appear for a scheduled court hearing in December 2024. Authorities later detained him in Mexico, where he was held by Mexican immigration officials before being returned to the United States.
The U.S. Attorney’s Office stated that “an indictment contains allegations only and that Khalladi is presumed innocent until and unless proven guilty.” If convicted on all counts, Khalladi could face up to 60 years in prison. The final sentence would be determined by the District Court according to federal guidelines and statutory factors.
First Assistant United States Attorney Jonathan A. Ophardt acknowledged the work of Homeland Security Investigations, Internal Revenue Service Criminal Investigation, Customs and Border Protection, and noted the FBI’s assistance in locating Khalladi in Mexico.
Assistant U.S. Attorneys Nate Burris and Michelle Arra are prosecuting the case. Steven Barth, Assistant Federal Public Defender, represents Khalladi.
This prosecution is part of the Homeland Security Task Force (HSTF) initiative created under Executive Order 14159: Protecting the American People Against Invasion. The HSTF brings together multiple federal agencies—including Homeland Security Investigations, FBI, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Diplomatic Security Services, Internal Revenue Service-Criminal Investigation—and state and local partners to target criminal organizations operating within and outside the United States. The initiative focuses on crimes such as human smuggling and trafficking rings as well as those involving children or violent criminal aliens.
