The United States government has initiated a civil forfeiture action to recover $5.3 million connected to a business email compromise (BEC) scheme that defrauded a Massachusetts workers union.
The fraud, which took place in January 2023, involved a spoofed email that led the union to transfer $6.4 million to a fraudulent account.
The funds were then moved through various international banks and cryptocurrency exchanges. US authorities have taken hold of funds from seven domestic accounts linked to the scheme.
In a press release obtained from the United States Attorney’s Office, District of Massachusetts, Acting U.S. Attorney Joshua S.
Levy stated, “BEC fraud schemes present a serious threat to businesses and individuals nationwide, causing significant financial and emotional harm to victims by exploiting trusted communication channels they rely upon every day.
Today’s civil forfeiture action demonstrates that when victims report such misconduct to the authorities there may be steps we can take to recover stolen funds.
We hope today’s action helps restore some level of stability and justice for those impacted by fraud.”
The statement also urged members of the public who believe they are victims of cybercrime to report to the authorities.
The complaint alleges that in January 2023, the workers union received an email requesting a change of payment information from what initially appeared to be the consulting firm’s true email address but was, in fact, a spoofed email address.
The workers’ union unwittingly transferred funds to an account controlled by someone other than the intended recipient.
The fraudulently obtained funds were traced to seven domestically held bank accounts, the contents of which were subsequently seized by U.S. authorities.
Reports show that the US government is taking legal action to recover funds allegedly obtained through fraudulent means.
The announcement signifies collaboration between various law enforcement agencies and prosecutors to pursue the case.
The legal process involved in civil forfeiture indicates that the government must provide evidence to prove its case before any forfeiture can be ordered by the court.
The civil forfeiture action is being prosecuted by Assistant U.S. Attorney Matthew M. Lyons of the Asset Recovery Unit along with Trial Attorneys Jasmin Salehi Fashami and Adrienne E. Rosen of the Justice Department’s Money Laundering & Asset Recovery Section.
