Two California Men Charged with Operating Scheme to Defraud Elders of Over $794,000

Alaaraj and Nassar used sophisticated techniques to take over victims' bank accounts, draining them and running up unpaid credit card debits that resulted in significant losses. The defendants then funneled the stolen money through pass-through accounts and disbursed it to themselves.

Key Takeaways:

• The indictment charges Ayman Alaaraj and Ahmad Nassar with operating a scheme to defraud, bank fraud, and aggravated identity theft, with a total loss of over $794,000.
• Nassar was previously convicted of unlawfully possessing 15 or more access devices and aggravated ID theft in 2019, serving time in prison and being released on March 4, 2021.
• In May 2023, Nassar took over multiple bank accounts belonging to two elderly victims at two separate banks, using techniques such as porting over phone numbers to defeat dual-factor authentication protections.
• The defendants used various methods to disburse the stolen money, including ATM cash withdrawals, personal checks, Western Union transactions, Zelle transactions, and payments to credit cards.
• The Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control investigated the case, with Assistant U.S. Attorney Elliot C. Wong prosecuting.
• If convicted, the defendants face a maximum statutory penalty of up to 30 years in prison and a $1 million fine for each count of bank fraud.
• Nassar also faces 20 years in prison and a $250,000 fine for the count of access device fraud.

Statistics:

• Over $794,000 in losses to the victims
• 15 or more access devices unlawfully possessed by Nassar in 2019
• 2 elderly victims whose bank accounts were taken over by Nassar in May 2023
• 2 separate banks targeted by Nassar in victim account takeovers
• $794,000+
• 20 (years in prison for Nassar's access device fraud count)
• $1 million (fine for each count of bank fraud)
• $250,000 (fine for Nassar's count of access device fraud)

Sources:

• Office of United States Attorneys
• Federal Bureau of Investigation
• California Department of Justice – Bureau of Gambling Control
• Assistant U.S. Attorney Elliot C. Wong