'Grandparent' Scammer Admits To Laundering Hundreds Of Thousands From Victims: DOJ

LOS ANGELES, CA — A West Los Angeles man pleaded guilty Wednesday to his role in a "grandparent" scam, in which often-elderly people are duped into sending money to scammers under the pretense that their loved ones are in danger.

James Wesley Jackson III, 44, entered his plea in federal court in Los Angeles federal to one count of conspiracy to commit money laundering, according to the U.S. Attorney's Office.

Jackson — who is also known as "Imperial" — admitted to serving as a "money mule" in a "grandparent" scam, recruiting others to serve similar roles and stealing peoples' identities in order to open up bank accounts to handle income from the scam, according to court documents obtained by Patch.

According to prosecutors, "scammers would contact victims throughout the United States pretending to be relatives of the victims, such as a grandchild, and pretending to be persons in contact with the victims’ relatives, such as a lawyer or law enforcement officer. The scammers would falsely claim that the victims’ relatives were in legal jeopardy or otherwise in distress, and that the victims’ relatives needed the victims to assist by sending them money."

As a money mule, Jackson admitted to opening bank accounts in which checks obtained from victims of the scam would be deposited. He also recruited three other people to serve as money mules. He and his co-conspirators stole the identities of victims to create new business entities and open bank accounts in those names, according to his plea agreement.

In total, defendant conspired to launder approximately $378,027.22 from four victims who live across the country, according to prosecutors.

A two-count indictment also charges Christopher Fagon, 47, who at the time of the scheme lived in the Beverly Grove neighborhood of Los Angeles, and is now believed to reside in or near Toronto, Canada.

Also charged in the case is Christopher Fagon, 47, who previously lived in Beverly Grove and is now believed to reside in or near Toronto, Canada.

Jackson is due back in court for sentencing Feb. 2, where he faces a possible sentence of up to 20 years in federal prison, according to prosecutors.