4 Sonoma County Residents Arrested In $7.8M International Scam: SRPD

SONOMA COUNTY, CA — Four Sonoma County residents are facing charges of money laundering and conspiracy in connection with a $7.8 million international phone scam enterprise, it was announced Thursday.

Following an investigation that lasted over a year, suspected 21-year-old ringleader Alexander Knigge of Santa Rosa and his suspected co-conspirators, 22-year-old Calvin Valledor of Santa Rosa, 23-year-old Anthony Chand of Santa Rosa, and 21-year-old Brileigh Blosser of Healdsburg, were arrested late last month, according to the Santa Rosa Police Department.

The investigation began in September 2022 when a detective from West Deptford, New Jersey, called the Santa Rosa Police Department about a scam affecting a New Jersey resident. The detective tracked funds stolen from the victim and found that around $1,000 was withdrawn by a person in Santa Rosa, according to Santa Rosa police Sgt. Patricia Seffens.

Detectives from Santa Rosa PD agreed to help the investigator and served a search warrant Nov. 15, 2022, at the person's residence in the 2100 block of Meadowbrook Court in Santa Rosa. Chand was arrested as a result of the warrant service.

Detectives continued investigating and determined that Chand was working with three co-conspirators within the Santa Rosa area to commit extensive money laundering throughout Sonoma County, Seffens said.

"Evidence suggested Chand and his co-conspirators were willingly conspiring with an overseas scam call center to launder stolen money through an elaborate scheme before sending it back overseas," Seffens said. "Evidence located included extensive financial records, bank receipts and cell phone evidence tying Chand to his co-conspirators."

The evidence led to Knigge.

A warrant was served that same day at a residence in the 4000 block of Arthur Ashe Circle in Santa Rosa. The search revealed the residence was a "hub of the operation, with an entire bedroom consisting of whiteboards with victim information on it and dozens of cell phones on charging banks," Seffens alleged.

Each cellphone had Post-It notes containing personal information of identity theft victims, according to police.

Knigge was identified as the primary resident of the home on Arthur Ashe Circle.

Several Rolex Watches, Audi Sedan, $80,000 Cash Seized

Detectives seized $80,000 in cash from a hidden safe during the Nov. 15, 2022, search on Arthur Ashe Circle, Seffens said.

Evidence showed Knigge spent victims' money to buy an Audi sedan and several expensive Rolex watches, which were also seized, Seffens said.

"The warrant service provided detectives with a small understanding of the scheme," Seffens said. "Evidence suggested that Knigge was keeping stolen victim funds, which he had laundered or was actively laundering, in several bank accounts which were subsequently frozen. A total of $275,000 of victim money was frozen in Knigge’s bank accounts."

Investigators later learned that while they were searching his residence, Knigge was in Hawaii trying to purchase a property using money stolen through the scams, the sergeant said.

150 Bank Accounts At 26 Banks

To gain a better understanding of the crimes investigators suspected were taking place, detectives served dozens of search warrants at 26 different financial institutions targeting over 150 bank accounts that police allege were created or used by Knigge.

From that investigation, detectives outlined the scheme they allege was used by Knigge and his co-conspirators.

"The numerous victims from throughout the United States, many of whom were elderly, were contacted by call centers overseas, likely based out of India," Seffens said. "Those victims were scammed by a variety of tricks, ruses, and strategies. These scams included false personation of law enforcement to trick citizens into paying money to settle outstanding warrants or overdue taxes, 'Norton Lifelock' scams, computer virus scams, and remote bank account hacking through tricks or elaborate schemes. The victims were ultimately convinced or tricked into completing wire transfers to bank accounts being controlled by Knigge in Santa Rosa."

As part of the criminal enterprise, it is alleged Knigge constantly created new bank accounts with the names and information of people throughout the country — which police believe he likely obtained online.

Detectives identified nearly 100 people victimized by Knigge and interviewed many of them, Seffens said.

It is believed that once Knigge received money in a bank account, he and his co-conspirators worked quickly to launder the funds out of the account to avoid the bank freezing the funds. To accomplish this and avoid law enforcement detection, Knigge used a plethora of strategies and relied heavily upon his co-conspirators, whom he routinely called "employees,” to launder the funds.

Money laundering hides the origin of illegally obtained money by "cleaning" it through a variety of financial transactions to convert it into legitimate funds, such as profits from a business.

Police believe Chand, Blosser and Valledor helped Knigge commit identity theft and launder money.

"Once the money was laundered, evidence suggests that Knigge kept a portion, paid his co-conspirators a small amount for helping launder the money, and sent the remaining scam victim money overseas, presumably to the original scammers," Seffens said.

Detectives allege the group laundered more than $7.8 million in 2022.

Through a remarkable effort, Seffens said, detectives worked backward and identified victims throughout the country who were scammed into sending money to Knigge. Santa Rosa detectives contacted the victims' local law enforcement agencies to file police reports — with the ultimate goal being to return some of the lost funds.

Under Surveillance

Last month when detectives secured arrest warrants for Knigge, Blosser and Valledor, they were aware Knigge and Blosser moved to Reno, Nevada.

As the pair traveled back to Sonoma County on Nov. 22, detectives had them under surveillance. When Knigge and Blosser reached Lakeville Highway in Petaluma, detectives moved in and took them into custody.

The final suspect, Valledor, was detained Nov. 27 during a traffic stop in the 2100 block of Steele Lane. Detectives proceeded to serve search warrants at Valledor's residence in the 9400 block of Lazy Creek Drive in Windsor and his other residence in the 2900 block of West Steele Lane and seized two illegal rifles.

Valledor was arrested for the outstanding warrant and on suspicion of possession of an assault rifle and possession of a short-barreled rifle.

Sonoma County jail records showed Knigge, Blosser, Chand and Valledor were no longer in custody as of Thursday.

According to court records, they were arraigned Nov. 29 in Sonoma County Superior Court and agreed to pre-trial release terms.

All four are due in court Jan. 9.

Knigge faces multiple counts of elder abuse, identity theft, money laundering, conspiracy and aggravated white-collar crime enhancement.

Blosser, Chand and Valledor face similar but fewer charges.

In the meantime, Seffens said, Santa Rosa police detectives were continuing the "extremely complex" investigation, seeking anyone in Sonoma County who may have knowledge of the money laundering.