Department of Justice Charges Unprecedented Number of Elder Fraud Defendants Nationwide and Launches Hotline

LEXINGTON, Ky.– U.S. Attorney Robert M. Duncan Jr., for the Eastern District of Kentucky, joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale today 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.

The Eastern District of Kentucky has charged six defendants in cases of elder fraud schemes. The ongoing Elder Justice cases for our District are as follows:

• United States v. Artrip, Case No. 0:19-CR-10
• United States v. Fafunmi, Case No. 5:19-CR-169
• United States v. Inkoom, Case No. 5:19-CR-139
• United States v. Peavler, Case No. 5:19-CR-165
• United States v. Phelps, Case No. 0:19-CR-75
• United States v. Sears, Case No. 6:19-CR-25

With cooperation from local, state, and federal partners, the District is prioritizing combatting elder financial exploitation. An example of cooperation among law enforcement agencies is the Kentucky Elder Justice Task Force, which brings together the resources of federal, state, and local agencies involved in protecting the elderly.  For more information on the Kentucky Elder Justice Task Force, including how to report abuses, please visit: https://www.justice.gov/usao-edky/elder-justice-task-force.

“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.”

“The explicit targeting of elderly and vulnerable populations through various schemes has become rampant and is truly disgraceful,” said Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky.  “We have made combatting it a top priority in our Office.  We are committed to standing with our federal, state, and local law enforcement partners and we will continue to prosecute criminals who shamelessly try to cheat seniors out of their money, security, and peace of mind.”

"Oftentimes elderly are seen as opportunistic targets to criminals. They tend to be trusting people with money. We see seniors as the bedrock of our nation having sacrificed for their families and for our country. The FBI vows to bring those who attempt to defraud our seniors to justice, and today’s events are just one example of how local, state, and federal partners are working together to address this problem." Special Agent in Charge Robert Brown, FBI Louisville Field Office

This interactive map provides information on the elder fraud cases highlighted by today’s 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 district 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 today 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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