HOUSTON – A group of people living in Houston have been sentenced to federal prison for their involvement in a nationwide fraud scheme that targeted elderly victims, the United States Department of Justice announced Thursday.
Investigators said MD Azad, 26, Sumit Kumar Singh, 30, Himanshu Kumar, 26, MD Hasib, 28, and Anirudha Kalkote, 26, admitted they participated in a fraud ring from 2019-2020 which operated out of various cities, including Houston.
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U.S. District Judge Kenneth Hoyt ordered Hasib to serve 78 months in federal prison. The court previously sentenced Singh, Kumar and Kalkote to 78 months each, while Azad, the highest-ranking member of the conspiracy, received 188 months. Not U.S. citizens, the DOJ said all are expected to face removal proceedings following the prison terms.
U.S. Attorney Alamdar S. Hamdani said the court heard evidence from victim impact letters that described what almost 200 victims, many of whom were elderly, had endured because of the scheme. Some victims “lost their life savings,” investigators said.
Others were reportedly threatened when they refused to continue to pay and described continuing fear and ongoing anxiety after being watched through the video cameras on their home computers. In handing down the sentences, the court noted that the victims’ letters “sounded like a ‘horror show,’” a news release said.
“Anxiety, fear, humiliation and devastating financial loss are what these victims endured,” Hamdani said. “The criminals were relentless, preying on the elderly, often revictimizing their targets. These scammers from India didn’t care what impact their scheme had; all they cared about was money and a lot of it. Thankfully, the court imposed a just sentence for each of these ruthless fraudsters, bringing the victims peace and closure.”
The scheme targeted elderly victims throughout the United States and elsewhere, the DOJ said. The ring allegedly tricked and deceived victims using various methods and instructed them to send money via wire through a money transmitter business such as Western Union or MoneyGram, by buying gift cards and providing to the fraudsters or by mailing cash to alias names via FedEx or UPS.
Investigators said part of the scheme involved fraudsters contacting victims by phone or via internet sites for computer technical support and directing victims to a particular phone number. Once victims contacted the fraudsters, they were told various stories, such as they were communicating with an expert who needed remote access to their computer in order to provide technical support services. The group then gained access to victims’ personal data and bank and credit card information, authorities said.
Hamdani said victims typically paid a fee to conspirators for the fake technical support but were later told they were due a refund. Through paying for “technical support” or through the “refund” process, the ring allegedly gained access to victims’ bank accounts and credit cards and manipulated the accounts to make it appear the victim was paid too large of a refund due to an error. Victims were then instructed to reimburse the ring and were sometimes re-victimized multiple times. They were even threatened with bodily harm if they did not pay, according to the DOJ.
“The sentences imposed for the defendants in this case should serve as a harbinger for anyone attempting to defraud and manipulate our nation’s elderly. Prison awaits you,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation (CI). “This was an effort that combined the investigative skills of multiple law enforcement agencies that partnered together to uphold our commitment to the Elder Justice Initiative. We will continue to protect our seniors.”
All five individuals will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
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