Two Defendants Sentenced For “Horrific” Fraud Scheme That “Preyed Upon” Elderly Victims

<_w3a_sdt docpart="44919E9339274B8F96C4291734FF0590" dropdown="t" id="-1351956640" sdttag="City" title="City"><_w3a_listitem listvalue="Choose an item."><_w3a_listitem datavalue="GRAND RAPIDS" listvalue="GRAND RAPIDS"><_w3a_listitem datavalue="MARQUETTE" listvalue="MARQUETTE"> GRAND RAPIDS, MICHIGAN - U.S. Attorney for the Western District of Michigan Mark Totten today announced that two defendants were sentenced to federal prison for their roles in an international fraud conspiracy that stole over $11 million from mostly senior citizens in multiple states. A victim in West Michigan lost $398,000 to the conspiracy. Jayesh J. Panchal, 55, of Hicksville, New York, was sentenced to serve 78 months in federal prison and ordered to pay $7,930,287 in restitution to 40 victims of the conspiracy. Vijaya C. Shetty, 53, of Flushing, New York, was sentenced to 63 months in federal prison and ordered to pay $596,800 in restitution to victims. Shetty pleaded guilty in February 2024 and Panchal pleaded guilty in April 2024. U.S. District Judge Jane M. Beckering, who imposed the sentence, said Panchal and Shetty were involved in a "horrific" fraud scheme that "preyed upon some of our most vulnerable citizens, the elderly." She noted that many of the victims "worked, saved, and scrimped their whole lives and now have little or nothing to live on."

<_w3a_sdt docpart="44919E9339274B8F96C4291734FF0590" dropdown="t" id="-1351956640" sdttag="City" title="City"> "We teamed up with multiple law enforcement partners to pinpoint and punish these fraudsters who preyed on vulnerable elderly victims, and we'll continue to aggressively chase these criminals wherever they strike," said U.S. Attorney Totten. "Raising awareness of elder fraud is critical to help protect our older loved ones from losing their life savings to these types of crimes. My office is committed to fighting all types of elder abuse in our community."

<_w3a_sdt docpart="44919E9339274B8F96C4291734FF0590" dropdown="t" id="-1351956640" sdttag="City" title="City"> Information on other co-defendants who have been sentenced can be found here and here. Co-defendant Everette Thibou pleaded guilty and is scheduled to be sentenced on October 31.

<_w3a_sdt docpart="44919E9339274B8F96C4291734FF0590" dropdown="t" id="-1351956640" sdttag="City" title="City"> The fraud scheme began when victims received a pop-up message on their computers warning that a virus had infected their devices. The messages urged the victims to call a number to get help. When the victims called the number provided, they got a response from someone claiming to work for a tech company, such as Microsoft or Apple. In truth, they were scammers located in India, who scared the victims into giving money to the conspiracy with a variety of different ruses.

<_w3a_sdt docpart="44919E9339274B8F96C4291734FF0590" dropdown="t" id="-1351956640" sdttag="City" title="City"> In one version of the scam, victims were told that their bank accounts had been compromised and they needed to withdraw all their cash and give it to fake "federal agents" for safekeeping. In another version, victims were told that their computers had been infected by a virus and they needed to pay for technical support. In a third version, victims were told that they had been identified in a criminal investigation and needed to turn over money to clear their names. Regardless of which ruse was used, the result was the same: victims were convinced to give $11 million money to the scammers. Victims did this during in-person meetings with fake "federal agents," by mailing boxes of cash to addresses provided by the scammers, by wire transfers to bank accounts controlled by the scammers, or through gift cards they purchased at the direction of the scammers.

<_w3a_sdt docpart="44919E9339274B8F96C4291734FF0590" dropdown="t" id="-1351956640" sdttag="City" title="City"> Panchal and one of his co-defendants, McKhaela McNamara, made six trips to meet with a victim in Lake County, Michigan, to collect $398,000 in fraud proceeds from her. The victim had been convinced that her bank accounts had been compromised and that she was giving cash to "federal agents" for safekeeping. It is alleged that a different co-defendant helped arranged the meetings with the Lake County victim.

<_w3a_sdt docpart="44919E9339274B8F96C4291734FF0590" dropdown="t" id="-1351956640" sdttag="City" title="City"> Panchal and Shetty travelled throughout the United States at the direction of the leaders of the conspiracy in India to collect millions of dollars in cash from the victims. They also laundered fraud proceeds by depositing cash into various bank accounts.

<_w3a_sdt docpart="44919E9339274B8F96C4291734FF0590" dropdown="t" id="-1351956640" sdttag="City" title="City"> "Fraudsters are targeting our senior community at an alarming rate nationwide. Criminals continue to take advantage of their trusting nature and generosity," said Cheyvoryea Gibson, Special Agent in Charge for the FBI in Michigan. "We must empower our seniors with knowledge about elder fraud and its various forms to protect them from this intolerable manipulation. If you or someone you know has been a victim of elder fraud, we ask that you report it immediately to the National Elder Fraud Hotline or file a complaint with the FBI's Internet Crime Complaint Center at ic3.gov. We will not allow these criminals to continue exploiting our seniors."

<_w3a_sdt docpart="44919E9339274B8F96C4291734FF0590" dropdown="t" id="-1351956640" sdttag="City" title="City"> The FBI Detroit, Grand Rapids Resident Agency, Homeland Security Investigations, New Orleans, Louisiana, and the Lake County, Michigan, Sheriff's Office investigated the case, and Assistant United States Attorney Clay Stiffler prosecuted it.

<_w3a_sdt docpart="44919E9339274B8F96C4291734FF0590" dropdown="t" id="-1351956640" sdttag="City" title="City"> For more information on preventing elder fraud and help for victims, visit the Department of Justice's Elder Justice Initiative website, which includes a list of Michigan-specific resources. The FBI Elder Fraud website also provides several resources, including the following tips to help seniors protect themselves:

• Recognize scam attempts and end all communication with the perpetrator.

• Search online for the contact information (name, email, phone number, addresses) and the proposed offer. Other people have likely posted information online about individuals and businesses trying to run scams.

• Resist the pressure to act quickly. Scammers create a sense of urgency to produce fear and lure victims into immediate action. Call the police immediately if you feel there is a danger to yourself or a loved one.

• Be cautious of unsolicited phone calls, text messages, mailings, and door-to-door services offers.

• Never give or send any personally identifiable information, money, jewelry, gift cards, checks, or wire information to unverified people or businesses.

• Make sure all computer anti-virus and security software and malware protections are up to date. Use reputable anti-virus software and firewalls.

• Disconnect from the internet and shut down your device if you see a pop-up message or locked screen. Pop-ups are regularly used by perpetrators to spread malicious software. Enable pop-up blockers to avoid accidentally clicking on a pop-up.

• Be careful what you download. Never open an email attachment from someone you don't know and be wary of email attachments forwarded to you.

• Take precautions to protect your identity if a criminal gains access to your device or account. Immediately contact your financial institutions to place protections on your accounts and monitor your accounts and personal information for suspicious activity.

<_w3a_sdt docpart="44919E9339274B8F96C4291734FF0590" dropdown="t" id="-1351956640" sdttag="City" title="City"> If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available. The Federal Trade Commission also provides a hotline at 877-FTC-HELP and a website at www.ftccomplaintassistant.gov to receive consumer complaints.

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