CAMARILLO, CA – Kelen Magael Buchan, 27, of Westphal, Nova Scotia, is headed to federal prison for more than four years after being sentenced Tuesday for his central role in a sophisticated and ruthless “grandparent scam” that bilked over 80 elderly Americans out of a collective $519,400. U.S. District Judge Cormac J. Carney, clearly disgusted by the scheme, stated he hadn’t seen a fraud case “so cruel and heartless” in design.
Buchan pleaded guilty on May 21 to one felony count of wire fraud. The scam operated by cold-calling vulnerable seniors, falsely claiming to be a distressed grandchild or other relative in dire need of immediate funds. Buchan and his co-conspirators spun elaborate lies – car crashes in remote locations like Bolivia, fabricated arrests requiring immediate bail money – all designed to trigger panicked responses and quick cash transfers. The operation, run from Canada, specifically targeted U.S. citizens.
Court documents detail how Buchan would often pose *as* the grandchild, inventing crises to manipulate victims. In one instance, an 86-year-old man was swindled out of $4,300 after being told his grandson was involved in an accident in Bolivia. Investigators found the victim’s contact information during a search of Buchan’s residence and transaction details on a phone seized from his bedroom. Buchan didn’t stop at a single call; he and his crew repeatedly contacted victims, upping the ante and demanding more money under false pretenses.
The scheme wasn’t limited to panicked pleas for bail or accident funds. Buchan also impersonated lawyers, adding a layer of deceit to convince victims that their “grandchild” was receiving legal representation and that money was urgently needed. Funds were quickly converted to cash via Western Union or MoneyGram, making recovery nearly impossible. Buchan and his team were extradited from Canada in January after a lengthy investigation, and a federal grand jury indicted them in July 2013 with 25 counts of wire fraud.
Agiyl Kamaldin, 32, another member of the scam, has also pleaded guilty to one count of wire fraud and faces up to 20 years in federal prison, with sentencing scheduled for September 9. Clifford Kirstein, 29, and Mark El Bernachawy, 33, are slated for trial on December 3. However, one co-defendant, Peter Iacino, 29, remains at large and is believed to be hiding in Canada. The investigation was a joint effort between the FBI, the U.S. Secret Service, the Royal Canadian Mounted Police, and the Federal Trade Commission.
This case underscores a growing national concern about elder fraud, and the Department of Justice has ramped up enforcement efforts since the passage of the Elder Abuse Prevention and Prosecution Act (EAPPA). Assistant U.S. Attorneys Monica E. Tait and Kimberly D. Jaimez of the Major Frauds Section prosecuted the case, securing Buchan’s conviction and ensuring he’ll be held accountable for preying on the trust and vulnerability of American seniors. Judge Carney’s order for $519,400 in restitution offers some measure of justice to the victims, but the emotional toll of this scam is likely immeasurable.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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