Former Social Security Administration Employee Admits To Role In Transnational “Grandparent Scam” Operated From Dominican Republic

Press Release

NEWARK, N.J. - A New York man who previously worked as a claims specialist with the U.S. Social Security Administration admitted yesterday to acting as a courier for a Dominican Republic-based "grandparent scam" that targeted elderly Americans.

Victor Anthony Valdez, 39, of the Bronx, New York, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an indictment charging him with wire fraud conspiracy.

According to documents filed in this case and statements made in court, the scam operated from call centers in the Dominican Republic, making phone calls to elderly American victims purporting to be the victim's grandchild, an attorney representing the grandchild in criminal proceedings, court personnel, or other persons associated with the legal system. Conspirators told the victims that their grandchildren had been arrested and needed cash for bail or other expenses. Once victims were convinced through lies and falsehoods, coconspirators instructed the victims to provide cash to couriers, including Valdez, who went to victims' homes to pick up the money.

While acting as a courier for the scam between August 2020 and August 2021, Valdez is alleged to have retrieved, or attempted to retrieve, tens of thousands of dollars from defrauded victims at their homes in New York and New Jersey.

"The defendant admitted to his role in a scam targeting vulnerable seniors. The defendant and his coconspirators took advantage of grandparents' love and concern for their grandchildren they believed to be in trouble, convincing them to pay thousands of dollars. My office will continue to protect the rights of all victims, and we will relentlessly prosecute those who target and cheat vulnerable seniors."

U.S. Attorney Philip R. Sellinger

"The Justice Department's Consumer Protection Branch and its law enforcement partners will vigorously pursue individuals who prey on vulnerable and elderly victims through fraudulent schemes like the one in which the defendant here participated," said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. "Those who aid transnational criminals in deliberately targeting vulnerable consumers in the United States will be held accountable."

"Mr. Valdez intentionally conspired to defraud the elderly of their money and property through a cruel, international grandparent scam," said Hannibal "Mike" Ware, Acting Inspector General for the Social Security Administration. "The vast majority of the victims are Social Security beneficiaries, who live on a fixed income. We will continue to aggressively pursue such intolerable criminal activities. I thank the U.S. Attorney's Office for their work in prosecuting this case."

Valdez faces a maximum of 20 years in prison and a maximum fine of $250,000. Sentencing is scheduled for April 9, 2025.

U.S. Attorney Sellinger credited the special agents of the Social Security Administration's Office of the Inspector General under the direction of Special Agent in Charge Amy Connelly, and the Department of Homeland Security's Homeland Security Investigations (HSI) New York, under the direction of Special Agent in Charge William S. Walker.

Assistant U.S. Attorneys Carolyn Silane and Alison Thompson, and Trial Attorney Joshua Ferrentino of the Civil Division's Consumer Protection Branch and are prosecuting the case.

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 at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime (OVC), 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.

More information about the department's efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through OVC, which can be reached at www.ovc.gov.

Updated December 4, 2024