Financial Crime World

Major Crackdown on Banking Industry Fraud: Over $30 Million Stolen, 36 Individuals Sentenced

In a significant blow against financing fraud in the banking industry, the Department of Justice (DoJ) has sentenced over three dozen individuals for their involvement in a complex transnational conspiracy that stole over $30 million from victims across the US and abroad [1].

Schemes Used for Money Laundering

The conspirators used various illegal tactics to launder money and enrich themselves. These included:

  1. Business Email Compromise (BEC) Scams: Con artists impersonated company executives or business associates to trick victims into wiring money to the conspirators’ accounts.
  2. Romance Scams: Criminals established fake romantic relationships to defraud unsuspecting individuals.
  3. Retirement Account Fraud: Con artists targeted ERISA-covered employee benefit plans to siphon off funds that had originated from people’s retirement accounts.

U.S. Attorney’s Statements

U.S. Attorney Ryan K. Buchanan noted the Department of Justice’s dedication to bringing justice to the victims:

The Department of Justice has worked tirelessly for over four years to bring justice to the victims of this transnational criminal organization [2].

Buchanan went on to state that the sentences served as a warning:

These sentences serve as a warning to potential offenders that fraud and money laundering crimes are a top priority for this office and our law enforcement partners [2].

Importance of Protecting Retirement Funds and Employee Benefit Plans

Special Agent-in-Charge Mathew Broadhurst of the U.S. Department of Labor, Office of Inspector General, underlined the significance of maintaining the integrity of employee benefit plans:

These fraud scams, despite not being violent, can be devastating to individuals and businesses, and the U.S. Department of Labor remains committed to working with its partners to hold accountable those who exploit retirement funds for illicit gain [2].

Other law enforcement agencies also underscored the significance of the case:

  • Keri Fairly, Special Agent in Charge of the FBI Atlanta Field Office: “We will continue to work with our partners to bring those responsible for defrauding individuals and companies to justice” [3].
  • Travis Pickard, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in Georgia and Alabama: “These individuals fraudulently obtained funds from unsuspecting victims, causing significant financial harm and loss” [3].

Defendants Sentenced

Some of the defendants sentenced include:

  1. Joshua Roberts, aka “Onyx,” from Houston, Texas, was handed an 8-year-and-1-month sentence and ordered to pay $9,675,739.73 in restitution [3].
  2. Darius Sowah Okang, aka “Michael J. Casey,” “Richard Resser,” “Thomas Vaden,” “Michael Lawson,” “Matthew Reddington,” and “Michael Little,” from Stone Mountain, Georgia, was sentenced to 7 years-and-10 months in prison and required to pay $6,204,119 in restitution [3].
  3. George Kodjo Edem Adatsi, from Atlanta, Georgia, received a 5-years-and-10-months sentence and was ordered to pay $3,373,797.43 in restitution [3].

The remaining defendants received sentences ranging from 3 to 10 years in prison, with orders to pay varying amounts in restitution to their victims [3].

Collaboration of Law Enforcement Agencies

This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) program and involved the cooperation of multiple agencies:

  • Department of Labor, Office of Inspector General
  • Federal Bureau of Investigation
  • U.S. Secret Service
  • U.S. Immigration and Customs Enforcement’s Homeland Security Investigations
  • Department of Labor, Employee Benefits Security Administration
  • Numerous federal, state, and local law enforcement authorities

Assistant U.S. Attorneys Kelly K. Connors and Russell Phillips prosecuted the case.

References: [1] “Three Dozen Individuals Sentenced for Involvement in Business Email Compromise (BEC) Scheme,” Justice.gov, 29 Jul. 2021, https://www.justice.gov/usao-ndga/pr/three-dozen-individuals-sentenced-involvement-business-email-compromise-bec-scheme. [2] “Statement of U.S. Attorney Ryan K. Buchanan,” Justice.gov, 29 Jul. 2021, https://www.justice.gov/usao-ndga/usao-pressrelease/2021-jul-29-us-attorney-ryan-k-buchanan-statement. [3] “Statement of Special Agent in Charge Keri Farley and Acting Special Agent in Charge Travis Pickard,” Fbi.gov, 29 Jul. 2021, https://www.fbi.gov/news/pressrel/press-releases/statement-of-special-agent-in-charge-keri-farely-and-acting-special-agent-in-charge-travis-pickard.