Toledo Mother, Son Charged in $74K PayPal Scam Scheme

Toledo residents Patsy A. Schmidt, 53, and her son Bradley Schmidt, 22, have been hit with federal charges tied to a years-long Internet fraud scheme that ripped off unwitting sellers on Craigslist and other online marketplaces. The mother-son duo allegedly pocketed nearly $74,000 in stolen funds between 2010 and 2013, using fake PayPal emails and phony pick-up agents to trick victims into wiring money they’d never see again.

According to criminal informations filed by the U.S. Attorney’s Office for the Northern District of Ohio, Patsy Schmidt defrauded victims of nearly $50,000, while Bradley Schmidt obtained almost $24,000 under false pretenses. Both are charged with one count of conspiracy to launder money and one count of substantive money laundering—a federal offense carrying serious prison time if convicted.

The scam followed a chillingly precise pattern: the Schmidts and co-defendants contacted people selling goods online, feigning interest in purchases. They promised payments via PayPal—plus extra fees for shipping or agents—then claimed the funds were held pending verification. Victims were told to wire the agent fee through Western Union or MoneyGram to Patsy, Bradley, or another conspirator posing as a courier.

Using spoofed PayPal email addresses, the fraudsters sent convincing messages stating the victim’s account was credited—just not accessible until the fee was verified. Once the wire confirmation arrived, the Schmidts vanished. The money—sent from states including Massachusetts, Oregon, Texas, and Washington—was funneled into Toledo accounts before being transferred overseas.

Investigators say the Schmidts then shipped the stolen cash to co-conspirators in Nigeria, keeping a cut for themselves. The U.S. Secret Service in Toledo led the probe, unraveling a transnational scam that exploited the trust of everyday sellers trying to make a quick sale online.

The case is now in the hands of Assistant U.S. Attorney Noah P. Hood. As Carole S. Rendon, former U.S. Attorney for the district, emphasized, an information is not proof of guilt—only a formal charge. The Schmidts are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, their sentences will be dictated by federal guidelines, considering their roles, criminal history, and the severity of the fraud. Maximum penalties apply, but actual sentences may vary.

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