NY Man Charged in $8M Fraud & Money Laundering Scam

PROVIDENCE – A New York man stands accused of orchestrating a colossal fraud and money laundering scheme that bilked Rhode Island businesses out of over eight million dollars, according to federal prosecutors.

Tushal Rathod, 45, from Baldwinsville, NY, was hit with a seven-count indictment charging him with wire fraud conspiracy, multiple counts of wire fraud, aggravated identity theft, money laundering conspiracy, money laundering, concealment of money laundering, and engaging in transactions with proceeds of criminal activity.

The grand jury’s allegations claim that Rathod colluded with online contacts to siphon off fraudulent proceeds. He is said to have kept a 10% cut while funneling the rest through various businesses and financial accounts, some of which were fraudulently created in his name. The scheme reportedly included business email compromise, account takeover, and counterfeit checks.

Among the victims was a Rhode Island law firm that lost over $163,200; a California credit union that fell prey to nearly $8 million in losses; and an IT company robbed of $154,900. Rathod is accused of opening multiple business bank accounts to receive these proceeds, recruiting others to do the same, and then communicating account details to co-conspirators.

Rathod’s activities also involved creating false documents to gain access to funds in those accounts, which he withdrew and transferred in ways designed to cover his tracks. It is further alleged that he converted some of these proceeds into Bitcoin.

Assistant United States Attorney Sandra R. Hebert is leading the prosecution against Rathod, while the FBI conducted the investigation. The defendant is presumed innocent until proven guilty.

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