WASHINGTON D.C.
In the past six months, U.S. law enforcement agencies took action against over 2,300 money mules, far surpassing last year’s effort, which acted against over 600 money mules, according to officials.
Additionally, more than 35 individuals were criminally charged or arrested for their roles in receiving victim payments and forwarding the fraud proceeds to accomplices or laundering fraud proceeds.
The U.S. Department of Justice, the FBI, the U.S. Postal Inspection Service, and six other federal law enforcement agencies completed the third annual Money Mule Initiative
The Initiative is a coordinated operation to disrupt the networks through which transnational fraudsters move the proceeds of their crimes.
Money mules are individuals who assist fraudsters by receiving money from victims of fraud and forwarding it to the fraud organizers, many of whom are located abroad.
Some money mules know they are assisting fraudsters, but others are unaware that their actions enable fraudsters’ efforts to swindle money from consumers, businesses, and government unemployment funds. Europol announced a simultaneous effort, the European Money Mule Action (EMMA) today.
This year, actions occurred in every state in the country.
The initiative targeted money mules involved in a wide range of schemes including lottery fraud, romance scams, government imposter fraud, technical support fraud, business email compromise or CEO fraud, and unemployment insurance fraud.
Many of these schemes target elderly or vulnerable members of society.
Some highlights from this year’s efforts are:
- Actions were taken to halt the conduct of approximately 2,300 money mules, spanning 92 federal districts.
- Law enforcement served approximately 2,000 money mules with letters warning the money mules that they were facilitating fraud and could face civil or criminal consequences for continuing their actions. Agents conducted over 450 interviews.
- In about 30 instances, agents seized assets or facilitated the return of victim funds. Among the asset seizures was a 2019 Lamborghini, which was seized as part of an investigation into a business email compromise scheme.
- The U.S. Postal Inspection Service filed 14 administrative actions requiring money mules to cease facilitating fraud.
- U.S. Attorney’s Offices and the Consumer Protection Branch filed 17 civil injunctive actions seeking court orders requiring money mules to stop facilitating fraudulent activity.
- Districts filing those actions include the Western District of Washington, District of South Carolina, Middle District of Florida, Southern District of Florida, Central District of California, Northern District of New York, and District of Colorado.
The criminal cases include:
- The U.S. Attorney’s Office for the Central District of California indicted three individuals for collecting parcels containing victim proceeds in a government imposter scheme.
- The U.S. Attorney’s Office for the District of Maryland indicted three individuals for opening bank accounts using falsified documents for the purposes of facilitating a business email compromise scam.
- The U.S. Attorney’s Office for the Western District of Texas indicted an individual for facilitating a lottery fraud scheme. The indictment also seeks to forfeit over $1.2 million.
- The U.S. Attorney’s Office for the Northern District of Ohio indicted two money mules who facilitated a grandparents scam.
- The U.S. Attorney’s Office for the Eastern District of Virginia charged a money mule who laundered gift cards purchased by fraud victims.
Defendants are presumed innocent unless proven guilty.
“The success of the Money Mule Initiative is the culmination of the hard work by and coordination between the FBI and our federal, state, local, and international partners,” said FBI Director Christopher Wray. “This campaign has resulted in hundreds of criminal arrests worldwide and justice for countless victims. Today’s announcement should send a clear message to those engaged in this type of criminal activity: they are not outside the reach of law enforcement, and the FBI and its partners will relentlessly pursue them in order to protect the American people.”
The agencies participating in the Money Mule Initiative and community partners are undertaking an outreach campaign to increase awareness of how fraudsters use and recruit money mules, authorities stated.
U.S. Attorney’s Offices across the country, through their Elder Justice Coordinators, will be reaching out to their communities to educate the public about money mules.
AmeriCorp Seniors (formerly Senior Corps) will be working to increase awareness of how money mules facilitate fraud and how consumers can avoid unwittingly assisting fraud schemes.