Two Individuals Detained in Federal Custody in Ongoing Elder Fraud Investigations
PROVIDENCE, RI – Two individuals have been ordered detained in federal custody, charged in ongoing federal, state, and local law enforcement investigations into online scams targeting Rhode Island seniors, announced United States Attorney Zachary A. Cunha.
On September 26, Jirui Liu, 22, of Scarborough, Ontario, Canada, appeared before a U.S. Magistrate, having been charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. It is alleged that he participated in a scheme that caused a 79-year-old man to turn over to $35,000 in cash and gold bars valued at $130,000 to members of the conspiracy.
On September 23, 2024, Kush J. Patel, 22, of Bridgeport, CT, was ordered detained following his initial appearance in U.S. District Court, having been charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. It is alleged that Patel participated in a scam that defrauded a Rhode Islander of nearly $200,000.
As reflected in court documents in the matter of the United States v. Jiri Liu, while shopping online, a 79-year-old Narragansett man received a pop-up message that falsely claimed that he was under investigation for attempting to purchase child pornography. He was directed him to call a telephone number provided to him to address the issue. When he called the number, scammers falsely told him that his Social Security number had been compromised and is involved in money laundering activity, and that the government was attempting garnish his assets. The scammers then put the victim in touch with co-conspirators who impersonated federal authorities and a bank employee who instructed the victim to turn over his assets to the government so that they could be secured during the investigation. It is alleged that as part of the scheme, in early September, an unknown member of the conspiracy traveled to the victim’s home, where the victim provided him with $35,000 in cash. Several days later, at the direction of the conspirators, the victim purchased $135,000 in gold bars and delivered them to members of the conspiracy.
On September 24, 2024, the scammers attempted to arrange for the victim to deliver an additional $160,000 in gold bars. Before that occurred, however, the victim contacted law enforcement to report that he had been scammed. Homeland Security Investigations (HSI) arranged for the production of fake gold bars (photo attached), which were provided to the victim for the third delivery. HSI agents surveilled the delivery as it was made, as is alleged, to Liu, who was arrested outside of the victim’s home.
In a separate investigation that resulted in the arrest of Kush J. Patel, HSI joined Tiverton, RI, Police after learning that a 72-year-old individual was the likely victim of online scammers. That investigation determined that a separate victim responded to an online pop-up message claiming that his computer contained a virus, and was falsely told that his identity had been compromised and that drug trafficking, money laundering, and child pornography had been associated with his name. The victim was advised that he would need to speak with a Federal Trade Commission agent about the matter, at which point this purported agent told the victim that, in order to resolve the issue privately, his assets would need to be frozen. Over the next several weeks, the fake FTC agent directed the victim to make three purchases of gold bullion from a specific gold dealer in New York via wire transfer, and that the gold was to be delivered to the victim’s home. As a result of these instructions, the victim made three purchases of gold bullion in amounts totaling $96,093.96 $101,233.79; and $165,762.32, respectively. The first two deliveries of bullion were picked-up by an unknown member of the conspiracy.
On September 21, at the direction of law enforcement, the victim substituted the contents of the third package before meeting with and delivering the package to an unknown individual, later identified allegedly as being Patel. The delivery occurred under law enforcement surveillance in a restaurant parking lot. Patel was followed as he left the parking lot and was arrested following a traffic stop by Connecticut State Police.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant United States Attorney Denise M. Barton.
These matters were investigated by Homeland Security Investigations and the East Providence Police Department, with substantial assistance from the Narragansett and Tiverton Police Departments. Assistance was also provided by the Providence, Warwick, Pawtucket, Cranston, and Newport Police Departments, and the Rhode Island and Connecticut State Police.
A series of joint federal, state, and local law enforcement investigations into online scams presently targeting victims in Rhode Island, Massachusetts, Connecticut, and New Hampshire remain ongoing.
Reporting fraud and fraud attempts is critical to law enforcement’s efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
