BOSTON — Frank Gregory Cedeno, 27, of Ocoee, Fla., has been indicted on federal charges tied to a brazen international scam that weaponized the reputation of the Securities and Exchange Commission to swindle victims out of hard-earned cash. Posing as federal regulators, Cedeno and his co-conspirators flooded inboxes with forged documents and official-looking emails designed to instill fear — and extract money.
The indictment unsealed yesterday in Boston charges Cedeno with conspiracy to commit wire fraud and conspiracy to commit money laundering. From at least April 2016 through November 2017, the scheme allegedly duped victims by claiming they were either entitled to a share of a legal settlement — requiring a fee to collect — or named as defendants in fake civil lawsuits demanding tens of thousands in penalties, disgorgement, and court fees. Victims were told to pay up or face federal court.
Documents show the scam relied on psychological pressure: victims received emails with the real SEC seal, fake case numbers, and urgent demands for payment. In one version, recipients were told they had won a portion of a $4.2 million fund — but had to pay $1,200 in fees to access it. In another, they were threatened with arrest unless they paid $25,000 in alleged penalties. Payments were funneled through bank accounts quickly drained and laundered overseas, primarily to individuals in the Dominican Republic.
Frank Gregory Cedeno was first arrested in January 2018 on a criminal complaint. He now faces a maximum of 20 years in prison on each count — 20 years for wire fraud conspiracy and another 20 for money laundering conspiracy. Each charge carries up to three years of supervised release, steep fines — up to $500,000 for money laundering — and mandatory restitution. The court will determine sentencing based on federal guidelines and the scale of harm.
Co-conspirator Leonel Alexis Valerio Santana, 28, of Boston, was previously charged in the same scheme and remains in custody awaiting trial. Prosecutors allege the scam targeted at least 95 victims between June 2015 and June 2017, with fraudulent solicitations exceeding $1.3 million and actual losses surpassing $235,000. Investigators traced the digital footprints and financial flows linking the fraud back to organized actors using stolen identities and spoofed domains.
The case was announced by United States Attorney Andrew E. Lelling; Harold H. Shaw, FBI Boston; Carl W. Hoecker, SEC Inspector General; and Joel P. Garland, IRS Criminal Investigations Boston. Assistant U.S. Attorney Brian A. Pérez-Daple is prosecuting. As with all federal cases, the charges are allegations — Frank Gregory Cedeno is presumed innocent until proven guilty beyond a reasonable doubt in court.
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Key Facts
- State: Massachusetts
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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