$5M Foreign Phone Scam Targeting Elderly MA Residents Exposed: US Attorney

An International "call center" scheme that bilked hundreds of elderly American victims out of $5 million was exposed and nine of the scammers have been arrested, the U.S. Attorney's Office said.

At least 50 of the victims, whose average age was 84, were Massachusetts residents, the U.S. Attorney's Office said in a media release.

The illicit operation was led by Oscar Manuel Castanos Garcia, a 33-year-old resident of the Dominican Republic, the release said.

Garcia was apprehended and charged with conspiracy to commit mail fraud and wire fraud and money laundering conspiracy, according to the release.

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Eight others also were in custody and four more charged in connection with the crimes remain at large, the release said.

Garcia oversaw a "sophisticated 'call center' operation in the Dominican Republic that tricked hundreds of elderly victims in the United States into believing that their grandchildren and other close family members were in trouble and needed money. Once the defendants obtained the money, they allegedly laundered their illicit proceeds back to the Dominican Republic," the release said.

Garcia "employed co-conspirators who spoke English and carried out what are commonly known as 'grandparent scams,'" according to the release.

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"These scams would begin with an 'Opener' employee, who would call victims and pretend to be a grandson or granddaughter who was in an accident," the release said. "Then, a 'Closer' would allegedly follow up with another call, pretending to be their grandchild’s attorney, asking for a sum of money to pay for their grandchild’s fees due to the accident. Castanos Garcia allegedly ran these call center locations with the help of several managers who allegedly supervised, instructed and paid the employees."

Unwitting rideshare drivers were pulled into the ruse as well, the U.S. Attorney's Office said, as "runners" in Garcia's employ would instruct the scammed grandparents to turn the money over to them.

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The elderly victims of this gambit were often revictimized by Garcia's band of scammers, according to the release.

"Often times, the call center would allegedly call victims again and ask for additional funds for their grandchildren, sometimes two or three additional times," the release said. "For example, callers allegedly would claim that there had been a 'mix up' or that a 'pregnant woman’s baby was lost in the crash.'"

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