$5.3M Union Scam: Feds Seize Funds in BEC Heist

BOSTON – A Massachusetts workers union was hit hard earlier this year, and now the feds are fighting to claw back a hefty chunk of the stolen cash. The United States Attorney’s Office today filed a civil forfeiture action targeting approximately $5,315,746 allegedly obtained through a ruthless business email compromise (BEC) scheme. The target? A Dorchester-based workers union, and the haul? A cool $6.4 million initially.

According to the complaint, the scam unfolded in January 2023. Union officials received a seemingly legitimate email requesting a change in payment details, purportedly from their investment consulting firm. It wasn’t legitimate. A single letter alteration to the email address was all it took to fool the union into wiring $6,400,000 to a fraudulent account. This wasn’t a clumsy operation; it was a calculated attempt to exploit trust and hijack a substantial sum.

The money didn’t stay put. Investigators traced the fraudulently obtained funds as they bounced through a labyrinth of intermediary bank accounts. The scheme’s architects attempted to funnel the cash to a cryptocurrency exchange, and further accounts in Hong Kong, China, Singapore and Nigeria. But the trail didn’t end there. Seven domestically held bank accounts containing proceeds from the scam were identified and seized by U.S. authorities. The feds are now seeking to permanently confiscate those funds.

“BEC fraud schemes present a serious threat to businesses and individuals nationwide, causing significant financial and emotional harm to victims by exploiting trusted communication channels they rely upon every day,” stated Acting U.S. Attorney Joshua S. Levy. “Today’s civil forfeiture action demonstrates that when victims report such misconduct to the authorities there may be steps we can take to recover stolen funds. We hope today’s action helps restore some level of stability and justice for those impacted by fraud.”

The investigation was a joint effort led by Acting U.S. Attorney Levy; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office. Assistant U.S. Attorney Matthew M. Lyons of the Asset Recovery Unit, alongside Trial Attorneys Jasmin Salehi Fashami and Adrienne E. Rosen of the Justice Department’s Money Laundering & Asset Recovery Section, are prosecuting the forfeiture action.

Anyone believing they’ve fallen victim to cybercrime – including BEC scams, romance scams, or cryptocurrency fraud – is urged to contact USAMA.CyberTip@usdoj.gov. It’s a harsh reality: these scams are increasingly sophisticated, and reporting is critical. It’s important to remember that the complaint only contains allegations, and the United States must prove, by a preponderance of the evidence, that the property is subject to forfeiture. A court order will be required to finalize the forfeiture of any claimed interests.

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