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    Dozens of Canadians Are Charged in $21 Million ‘Grandparent Scam’

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    The conspirators called older adults and posed as their grandchildren in need of bail money after a fake arrest, federal prosecutors said.They sat in call centers in Montreal and targeted older Americans, claiming to be grandchildren in need of bail money after an arrest. In all, federal prosecutors said, more than two dozen Canadians defrauded hundreds of vulnerable Americans out of $21 million over three years in what the authorities called a “Grandparent Scam.”On Tuesday, the U.S. Attorney’s Office in Vermont announced that 25 Canadian nationals had been charged with conspiring to defraud Americans in 45 states. All of those accused are from Ontario or Quebec, and 23 had been arrested in Canada as of Tuesday afternoon, prosecutors said.According to prosecutors, the conspirators placed phone calls from centers in and near Montreal between the summer of 2021 and June 4, 2024, as part of the scheme.“Today’s arrests are the result of domestic collaboration as well as our critical international partnerships with our colleagues in Canada, Sûreté du Québec and the Royal Canadian Mounted Police,” Michael J. Krol, a special agent for Homeland Security Investigations in New England, said in a statement on Tuesday. “Tackling transnational crime is one of our greatest priorities and we’re working hand-in-hand with our neighbors to dismantle organized criminal groups that threaten our safety and security.”The call centers were managed by five Canadians who were charged with money laundering in addition to the conspiracy charge that all of those charged face, according to court records.“These individuals are accused of an elaborate scheme using fear to extort millions of dollars from victims who believed they were helping loved ones in trouble,” Mr. Krol said in the statement.The conspirators also told the older adults that there was a “gag order” that prevented them from discussing their relative’s predicament with other family members, the U.S. attorney’s office said.The callers used a variety of tactics to obtain money from the older Americans, according to court records. The most common tactic was to pose as a young relative who had just been arrested after a car accident.After the victims turned over the money, it was eventually transmitted to Canada, the authorities said, noting that some of the transactions involved cryptocurrency.The 25 Canadians whose indictments were unsealed on Tuesday joined nine Americans who had previously been charged in the “Grandparent Scam,” the authorities said.Contacts for those charged or their lawyers were not immediately available.If convicted, the five managers would face a maximum of 40 years in prison, while the other alleged conspirators would face a maximum of 20 years in prison.The F.B.I. warned that grandparent schemes targeting older adults are common. One such scheme figured in the plot of the 2024 movie “Thelma,” starring June Squibb, which followed a 93-year-old woman on a journey to reclaim the money that had been stolen from her. More

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      Tax Preparers Charged in Scheme to Defraud Covid Relief of $65 Million

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      The preparers filed for pandemic-related tax credits on behalf of ineligible clients and then netted hefty filing fees, officials said.Two Mississippi tax preparers used multiple schemes to defraud $65 million from programs that had been designed to help businesses stay afloat during the coronavirus pandemic, federal prosecutors said this week.The preparers, Renata Walton, 44, and Nicole Jones, 36, both of Olive Branch, Miss., were indicted on more than 50 counts of wire fraud, money laundering, preparing false tax returns and obstruction of justice, the U.S. Attorney’s Office for the Western District of Tennessee said on Wednesday.They both pleaded not guilty and were each released on $100,000 bond, court documents show.Ms. Walton owned R&B Tax Express in Moscow, Tenn., where she and Ms. Jones prepared tax returns.Federal prosecutors said that the two women contacted small-business clients and asked if they were interested in pandemic-related grant money, according to court records. The women would then file for pandemic-related tax credits on behalf of the clients even though they were ineligible for those funds, officials said.The money came mostly from the Employee Retention Credit and the Sick and Family Leave Credit programs, court documents show.The Employee Retention Credit program offered companies thousands of dollars per employee if they could show that the pandemic was hurting their businesses, but that they were continuing to pay workers. Sick and Family Leave Credit offered tax breaks to employers who voluntarily gave their workers paid sick and family leave if they needed to take time off because of the pandemic.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      How Two Allies Wrestled Over a Crypto Giant and a Prisoner

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      The United States and Nigeria often collaborate. But the arrest of an American worker strained their diplomatic relations.After eight months in custody in Nigeria, an American working for the cryptocurrency firm Binance is coming home, ailing but alive, in a case that had strained U.S. ties with one of Africa’s most influential countries.Tigran Gambaryan, a compliance officer for Binance, had been held on money-laundering charges as part of a sweeping Nigerian government case against the company.On Thursday, a plane equipped with medical equipment departed Abuja, Nigeria’s capital, to bring him back to the United States. During his detention, Mr. Gambaryan had contracted malaria and double pneumonia, and he has a herniated disk.His release came after months of diplomatic pressure by the United States and in return for American promises of an improved partnership with Nigeria, including on cybercrime investigations.The detention of the American came as Nigerian frustration over Binance and other companies was rising, and as officials there sought more help in cracking down on cryptocurrencies for their country’s economic crisis.Mr. Gambaryan had arrived in Nigeria just days before he was arrested in February. He was initially held in a government-owned guesthouse but was transferred to the notorious Kuje prison in April.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      California Drug Clinic Operator Convicted in $3 Million Kickback Scheme

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      Casey Mahoney, 48, of Los Angeles, illegally paid “body brokers” to lure clients, a federal jury found.A California man who operated addiction treatment facilities in Orange County was convicted this week of paying nearly $3 million in illegal kickbacks for referrals of patients to his facilities, according to federal prosecutors.From at least October 2018 until December 2020, the man, Casey Mahoney, 48, of Los Angeles, paid about $2.87 million to “so-called ‘body brokers’” who gave thousands of dollars to patients to coax them into Healing Path Detox L.L.C. in Huntington Beach and Get Real Recovery Inc. in San Juan Capistrano, two treatment centers Mr. Mahoney operated, the U.S. Attorney’s Office for the Central District of California said in a statement on Friday.Some of the money that the body brokers gave to patients was used by the patients to buy drugs, the department’s statement said.After a nine-day trial, a federal jury in Los Angeles found Mr. Mahoney guilty on Wednesday of one count of conspiracy related to offering illegal remunerations for patient referrals, seven counts of illegal remunerations for patient referrals and three counts of money laundering, prosecutors said. He was acquitted on one count of aiding and assisting the preparation of a false tax document.The money-laundering charges, the most serious on which Mr. Mahoney was convicted, each carry a maximum sentence of 20 years in prison. Sentencing is set for Jan. 17, 2025.Treatment facility operators may pay a group like a marketer or an advertiser to promote their services to patients. But the Eliminating Kickbacks in Recovery Act of 2018 prevents the operators from paying body brokers kickbacks based on how much revenue the patients they referred brought in, as Mr. Mahoney did, according to the indictment.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Backpage Founder Gets Five Years in Case That Shut Down Website

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      Michael Lacey, 76, co-founded the website that became known for its ads for prostitution. He was convicted on a money laundering charge in a case that included accusations of sex trafficking.A founder of the shuttered classified advertising website Backpage was sentenced on Wednesday to five years in federal prison in connection with a sweeping case that led to the closing of the website and accusations against its executives that they promoted sex trafficking, prosecutors said.Michael Lacey, 76, of Arizona, was convicted on a single count of international concealment money laundering in November after being charged in a 100-count indictment in 2018 with several other defendants who, prosecutors said, conspired to promote prostitution ads and launder earnings of more than $500 million made from the scheme between 2010 and 2018. The case was tried in the U.S. District Court for the District of Arizona.In addition to the five-year prison sentence, Mr. Lacey was ordered Wednesday to pay a $3 million fine, prosecutors said.The jury that convicted Mr. Lacey last year was deadlocked on 84 other charges against him, including several charges that he helped advertise prostitution on Backpage. The deadlock led U.S. District Judge Diane Humetewa to declare a mistrial on those counts. It was the second mistrial in the case. Mr. Lacey would later be acquitted of several of the counts, but could still face 30 of them, according to The Associated Press.Two other executives, Scott Spear and John “Jed” Brunst, were convicted alongside Mr. Lacey on both money laundering and prostitution facilitation counts.They were acquitted on some of those charges in April, but each received 10-year sentences Wednesday, according to a spokesman for the Justice Department, Joshua Stueve.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Ex-Haitian Gang Leader Is Sentenced to 35 Years in Prison in Gunrunning Scheme

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      Prosecutors said Joly Germine, 31, who had led the 400 Mawozo gang, was involved in a conspiracy that used ransom money that had been paid for the release of American hostages to buy and smuggle guns into Haiti.The former leader of a Haitian street gang was sentenced on Monday to 35 years in prison for his role in directing a gunrunning scheme that smuggled guns to Haiti using ransom money that had been paid for the release of American hostages, prosecutors said.Judge John D. Bates of the U.S. District Court for the District of Columbia sentenced the former gang leader, Joly Germine, 31, of Croix-des-Bouquets, Haiti, in a Washington courtroom.Mr. Germine, who was known as Yonyon as the leader of the 400 Mawozo gang in Haiti, pleaded guilty on Jan. 31 to a 48-count indictment that charged him with several crimes, including money laundering, smuggling and conspiracy to defraud the United States, the U.S. attorney’s office for the District of Columbia said in a statement on Monday. The 35-year sentence does not address other charges of conspiracy to commit hostage taking that Mr. Germine also faces after the 400 Mawozo gang claimed responsibility in 2021 for taking 16 American hostages and one Canadian. The hostage-taking case, which Judge Bates is also overseeing, is to go to trial next year, court records show. After the 400 Mawozo gang took the 17 hostages in the fall of 2021, the gang sought a ransom of $1 million for each hostage, prosecutors said. (The hostages, who were part of a missionary group visiting an orphanage in Port-au-Prince, were all released or managed to escape by December.) The gang had also taken three Americans hostage in the summer of 2021, prosecutors said. It used some of the ransom money obtained in that scheme to buy at least 24 guns, including AR-15s and AK-47s, which were smuggled from the United States into Haiti, prosecutors said.Attorney General Merrick B. Garland said in a statement on Monday that the money used in the gunrunning scheme had been “extorted from kidnapping American citizens.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Guy Wildenstein, Art Family Patriarch, Found Guilty in Tax Trial

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      Mr. Wildenstein hid a prized art collection and other assets from French authorities to avoid paying millions in inheritance taxes, a Paris court ruled.Guy Wildenstein, the international art dealer, was found guilty in France on Tuesday of massive tax fraud, the latest twist after years of legal entanglements that have unraveled the secrecy that once surrounded his powerful family dynasty.Mr. Wildenstein, 78, the Franco-American patriarch of the family and president of Wildenstein & Co. in New York, was sentenced by the Paris Appeals Court to a four-year prison sentence, with half of it suspended, and the other half to be served under house arrest with an electronic bracelet. The court also sentenced him to pay a one million euro fine, or about $1.08 million.He stood accused of hiding significant chunks of his family’s art collection and other assets in a maze of trusts and shell companies when his father, Daniel, died in 2001, and after his brother, Alec, died in 2008.Prosecutors had said that he was trying to dodge hundreds of millions of euros in inheritance taxes. At the trial, which was held in the fall, they had requested a slightly more lenient prison sentence for Mr. Wildenstein, but they had also requested a much larger €250 million fine, or about $270 million.The Wildensteins, a family of French art dealers spanning five generations, were historically secretive about the exact details of their collection, which has included works by Caravaggio, Fragonard and many other blue-chip artists.Prosecutors said that the family was responsible for “the longest and most sophisticated tax fraud” in modern French history, by concealing art and other assets under complex foreign trusts and by shielding artworks worth millions of dollars in tax havens. By doing this, prosecutors said, the family grossly underestimated its enormous wealth when the time came to pay inheritance taxes.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Judge Rules Against Corporate Transparency Act Disclosure Provision

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      An Alabama judge barred the government from collecting certain company ownership data to help the Treasury Department identify money launderers, and called the effort a case of congressional overreach.In a blow to government efforts to combat money laundering, a federal court has ruled that the Treasury Department cannot require some small businesses to report personal details about their owners.Under a section of a 2020 law that took effect Jan. 1, small businesses must share details about their so-called beneficial owners, individuals who hold financial stakes in a company or have significant power over their business decisions. The law, the Corporate Transparency Act, passed with bipartisan support in Congress and was intended to help the Treasury Department’s financial-crimes division identify money launderers who hide behind shell corporations.But in a ruling issued late Friday, Judge Liles C. Burke of the U.S. District Court in Huntsville, Ala., sided with critics of the law. They argue that asking a company’s owners to present personal data — names, addresses and copies of their identification documents — was a case of congressional overreach, however well intended.“Congress sometimes enacts smart laws that violate the Constitution,” Judge Burke wrote in a 53-page filing. “This case, which concerns the constitutionality of the Corporate Transparency Act, illustrates that principle.”Judge Burke’s ruling prevented the department from enforcing the ownership reporting requirements on the plaintiff in the Alabama case, the National Small Business Association, a nonprofit trade group that represents more than 65,000 member companies.Lawyers who have followed the Alabama case said over the weekend that they expected the government to quickly request that the injunction be paused, either by Judge Burke or the 11th Circuit Court of Appeals in Atlanta, or both. The Justice Department will almost certainly appeal the Alabama case to the circuit court, the lawyers said.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Venezuela Orders Arrest of Top Opposition Figures on Treason

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      The move is the latest of several that undercut prospects of free elections next year, despite commitments made to the Biden administration in return for sanctions relief.Venezuela’s top prosecutor accused several top opposition figures of treason and ordered their arrest on Wednesday, the latest blow to prospects for credible elections that the government has agreed to hold next year in exchange for the lifting of crippling U.S. economic sanctions.The attorney general, Tarek William Saab, said that opponents of the leftist government had accepted money from ExxonMobil to sabotage President Nicolás Maduro’s recent referendum on annexing a large, oil-rich region in Guyana. The oil company could not immediately be reached for comment.Mr. Saab did not say what, specifically, the accused had done to thwart the referendum, but he said they would be charged with treason, conspiracy, money laundering and criminal association. He announced arrest warrants for 15 people, some of them prominent opposition members, including people who live abroad and two U.S. citizens.The Biden administration has tried to coax Venezuela into holding elections, relaxing some of the damaging American sanctions. In October, the government reached an agreement with the opposition on steps toward a vote, and it agreed last week that candidates who have been barred from running for office could appeal that penalty to the country’s top tribunal.But Mr. Maduro’s government has also repeatedly undercut the opposition’s ability to mount a meaningful challenge.More than 2.4 million Venezuelans voted in October in an opposition primary election for president, held without official government support. Since then, the government has questioned the primary’s legitimacy, has taken legal aim at its organizers and has barred the winner of the primary, María Corina Machado, from running for office for 15 years, claiming that she did not complete her declaration of assets and income when she was a legislator. Three of those Mr. Saab accused on Wednesday are members of Ms. Machado’s political party who live in Venezuela.Since Mr. Maduro took power in 2013, after the death of Hugo Chávez, the combination of growing oppression, rampant corruption and sanctions has made life much harder for ordinary Venezuelans, and millions have left the country. Under Mr. Maduro, international observers have called the country’s elections illegitimate.With the allegations of treason, President Biden must decide whether to continue betting that sanctions relief will persuade Mr. Maduro to allow a real vote, said Geoff Ramsey, a senior fellow for Venezuela at the Atlantic Council.“I think Maduro is really forcing Biden’s hand here,” he said. “It’s become clear that he can’t win a free and fair election, so he needs Washington to snap back the sanctions to justify a crackdown that allows the regime to revert to the status quo.”On Sunday, Venezuela held a referendum, backed by Mr. Maduro, on whether to annex the Essequibo region in Guyana. Mr. Maduro has cast the issue as a fight with ExxonMobil, the American oil company that has a deal with the Guyanese government. His critics say the vote was no more than a bid to divert attention from his political troubles by stoking nationalist fervor.Jorge Rodriguez, president of Venezuela’s National Assembly, with a map on Wednesday showing Essequibo as part of Venezuela.Pedro Rances Mattey/Agence France-Presse — Getty ImagesThe government reported a vote of more than 95 percent in favor. Though political analysts, social media users and New York Times journalists reported sparse turnout, the government claimed that it was heavy, with 10.5 million ballots cast.“With the inflated vote numbers, they’ve just become a mockery,” said Christopher Sabatini, a senior research fellow for Latin America at Chatham House, an international affairs research group in London. “Things really do seem to be falling apart.”The Essequibo region, with immense mineral and oil wealth but few people, is almost as large as Florida, taking up nearly three-quarters of the total area administered by Guyana. Venezuela and Britain both claimed it in the 19th century, and the dispute has continued since Guyana gained independence from Britain in 1966. The question is under consideration by the International Court of Justice in The Hague.At the same time that Mr. Saab was giving his news conference, Ms. Machado, a center-right former lawmaker, was holding one of her own at her party’s headquarters in Caracas, saying that the referendum had damaged the electoral authority’s credibility.As news of the charges and arrest orders spread on social media and through the room where Ms. Machado was speaking, her assistant pulled her campaign chief off the stage and whispered in her ear. Afterward, another party leader took the stage to say they were waiting for formal notice from the attorney general.The three party members who were charged left the headquarters without giving statements. They are the international relations coordinator, Pedro Urruchurtu; the political coordinator, Henry Alviarez, and the communications coordinator, Claudia Macero.The Americans accused by Mr. Saab are Damian Merlo, a consultant who has advised the authoritarian president of El Salvador, Nayib Bukele; and Savoi Jandon Wright. Mr. Saab gave no information about Mr. Wright, except that he was already imprisoned in Venezuela. More