PITTSBURGH, Pa. – United States Attorney Scott W. Brady of the Western District of Pennsylvania joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale in announcing the largest coordinated sweep of elder fraud cases in history.
This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
Four defendants were charged in western Pennsylvania as part of the nationwide elder fraud sweep.
Sue O’Neill of Sewickley, Pa., waived indictment and pleaded guilty in November to charges of wire fraud and filing false income tax returns. O’Neill, while employed as the Controller for Marco Contractors, Inc., embezzled approximately $8.7 million. Marco Contractor’s Inc. is owned by an individual over the age of 60.
In January, Ronnell Taylor, Jr. of Jeannette, Pa.; Barry Nealer of Pittsburgh, Pa.; and Michael Galanis of Export, Pa., were indicted for wire fraud conspiracy.
The indictment alleges that between March 2016, and August 2017, the defendants knowingly and willfully conspired to commit wire fraud, including, among other alleged conduct, by activating and programming cell phone numbers later used by individuals impersonating employees of the United States Internal Revenue Service to defraud victims in the United States. Many of the victims of this IRS imposter scheme were seniors.
“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Attorney General William P. Barr. “This year, the Department of Justice prosecuted more than 400 defendants, whose schemes totaled more than a billion dollars. I want to thank the men and women of the Department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases. The Department is committed to stopping the full range of criminal activities that exploit America’s seniors.”
U.S. Attorney Brady said, “Our seniors lived through the Depression, defeated the Axis and the Soviet Union, and built the America we know today. They worked hard and played by the rules their entire lives, and they deserve our respect, thanks and now, our protection. We’re going to do everything in our power to keep our seniors safe in their retirement from fraudsters.”
This interactive map provides information on the elder fraud cases highlighted by the sweep announcement.
Elder Fraud Hotline
Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud. The Hotline will be staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a “money mule” to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries. Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud. The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Agents and prosecutors in more than 85 federal districts participated in this effort to halt the money flow from victim to fraudster. These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.
These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.
The charges announced are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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