Nassau County authorities have charged seven men in connection with a $20 million money laundering and conspiracy scam that defrauded more than 1,800 victims, many of whom were elderly.
Prosecutors say the defendants got Home Depot and Lowe’s gift cards fraudulently, then used them to buy copper pipes, steel wires, and hot water heaters to resell for profit.
What we know: According to investigators, the defendants utilized a computer-based fraud to steal money from victims, some of whom were misled into believing that their personal information was being used to acquire child sexual abuse material. The victims were told to contact a specific number, and they were subsequently pushed into purchasing gift cards under false pretenses.
These gift cards were cashed by the suspects for construction supplies, which they then marketed to area plumbing and home renovation businesses.
The fraud ring is accused of facilitating more than 6,000 transactions at over 80 Home Depot and Lowe’s outlets in New York State alone.
Police said they discovered stolen construction supplies, substantial quantities of cash, and luxury items in the suspects’ vehicles.
By the numbers: 1,800+ victims across 45 states
- 6,000+ fraudulent transactions
- $20 million in total losses
- $50,000 worth of pipes purchased in a single day using 50+ gift cards
- $100,000 in cash recovered, along with high-end jewelry and handbags
What’s next: All seven men pled not guilty and face up to 15 years in jail if convicted. Six of the accused were freed on cashless bond, raising concerns among law enforcement officials.
“We have thousands of victims out there,” said Nassau County Police Commissioner Patrick Ryder. “If we’re going to be able to prosecute them, we have to keep them where they belong—and that’s in jail.”
What you can do: Officials are advising the public not to fall for phone scams.
“If someone calls you and identifies themselves as a government employee, a bank representative or representative of an Internet or software company and asks you for money, I’m telling you, hang up the phone,” said Nassau County District Attorney Anne Donnelly.