The United States has initiated a forfeiture action to recover approximately $5,315,746, believed to be proceeds from a business email compromise (BEC) scheme targeting a Massachusetts workers union and involving money laundering.
Thank you for reading this post, don't forget to subscribe!According to a statement from the United States District of Massachusetts, the fraudulently obtained funds were funneled through various intermediary bank accounts to a cryptocurrency exchange and bank accounts in Hong Kong, China, Singapore, and Nigeria.
In January 2023, a Dorchester-based workers union received an email, appearing to be from an investment consulting firm, requesting a change in payment information. The email, however, was from a spoofed address with one letter altered to mimic the consulting firm’s legitimate email. The union subsequently transferred $6,400,000 to the fraudulent account.
The illicit funds were then moved through several intermediary accounts, with portions directed to a cryptocurrency exchange and bank accounts in multiple countries. Investigators traced the proceeds to seven U.S.-held bank accounts, which were seized by authorities.
Acting U.S. Attorney Joshua S. Levy stated, “BEC fraud schemes present a serious threat to businesses and individuals nationwide, causing significant financial and emotional harm. Today’s civil forfeiture action demonstrates that reporting such misconduct to authorities can lead to recovery of stolen funds. We hope this action helps restore stability and justice for those impacted by fraud.”
