Dominica Exposes Massive Embezzlement Scheme, Arrests 70 Suspects

A massive embezzlement scheme has been dismantled in Dominica, with authorities arresting 70 suspects believed to have defrauded hundreds of US citizens out of more than $200 million.

The Investigation: Operation Discovery

The investigation, dubbed Operation Discovery, was launched over a year ago and culminated in a series of raids on March 2. During the operation, officials seized a staggering $400,000 in cash, as well as luxury vehicles, electronic equipment, firearms, and other assets.

The Criminal Network’s Schemes

The criminal network, which operated through call centers across the island, used various identity theft schemes to extract money from its victims. Some of these schemes include:

• Caller-ID Spoofing: Individuals working for the group used caller-ID spoofing services to fake their identities and demand extortion payments from individuals after threatening to kidnap family members.
• Prescription Fraud: They targeted people with prescriptions for controlled drugs and medications, offering them medicine without a doctor’s prescription before demanding payment.

Further Charges: Trafficking Illegal Firearms

The Attorney General also claimed that the network trafficked illegal firearms with the help of a separate criminal organization, the Trinitarios, which has been linked to arms trafficking and racketeering charges in the United States.

Money Laundering Methods

To launder their ill-gotten gains, the group allegedly used:

• Cryptocurrencies: Authorities believe that cryptocurrencies were used to transfer funds.
• Remittance Companies: Deposits through remittance companies were also used to launder money.
• Fraudulent Money Transfers: The group is suspected of making fraudulent money transfers to hide their illegal activities.

Total Estimated Loss: $250 Million

In total, authorities estimate that the network moved around $250 million. This highlights the growing threat posed by financial crime operations in the Caribbean.

Combating Financial Crime in the Caribbean

Dominica has long been a hub for financial crimes, with reports of Ponzi and pyramid schemes spreading across the region. The country’s Attorney General has prioritized the fight against corruption and organized crime, with efforts focused on going after graft in government and financial fraud.

The Caribbean Community (Caricom) has also identified cybercrime as one of its top security concerns, behind only human trafficking and smuggling.