PROVIDENCE, R.I. — Homeland Security Investigations (HSI) New England special agents and task force officers arrested two individuals who have been charged in ongoing federal, state and local law enforcement investigations into online scams targeting Rhode Island seniors.
On Sept. 26, Jirui Liu, 22, of Scarborough, Ontario, Canada — originally of China — 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 $30,000 in cash and gold bars valued at $130,000 to members of the conspiracy.
On Sept. 23, Kush J. Patel, 22, of Bridgeport, Connecticut, 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 he was under investigation for attempting to purchase child sexual abuse material. He was directed 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, and instructed the victim to turn over his assets to the government so 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 $30,000 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 Sept. 25, 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. HSI special agents arranged for the production of fake gold bars which were provided to the victim for the third delivery. The delivery occurred under law enforcement surveillance at the victim’s residence. Liu was followed as he left the parking lot and was arrested following a traffic stop by the Connecticut State Police.
In a separate investigation that resulted in the arrest of Kush J. Patel, HSI joined the Tiverton 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 sexual abuse material 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 Sept. 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. HSI special agents and task force officers surveilled the delivery as it was made, as is alleged, to Patel, who was arrested outside of the victim’s home.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
These matters were investigated by HSI New England’s Providence Resident Agent in Charge office and the East Providence Police Department, with substantial assistance from the Narragansett and the 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.
If you or someone you know is a victim of elder fraud, call the HSI Tip Line at 877-4-HSI-TIP or the National Elder Fraud Hotline at 833-FRAUD-11.