A Waterloo resident, Janice M. Augustine, 74, faces a civil lawsuit filed by the U.S. Attorney Rachelle Aud Crowe, alleging her role as a 'money mule' in a scam operation. Augustine, despite warnings from federal law enforcement, allegedly continued to move money for the fraudsters thereafter.
In a statement, U.S. Attorney Crowe of the Southern District of Illinois said that online fraudsters often target the elderly and the vulnerable, persuading them to help in money laundering operations. She urged residents to be cautious of anyone requesting financial help.
The complaint alleges that Augustine knowingly received money from fraudulent activities and then forwarded it to the criminals. The sums were electronically deposited into her bank accounts and sent via wire transfers.
"Acting as a money mule is a criminal act and can result in punishment even if committed unintentionally," warned FBI Springfield Acting Special Agent in Charge Shannon Fontenot. The FBI in their 2022 Internet Crime Report showed that residents of Illinois had lost $17.8 million to romance scams. Furthermore, Fontenot pointed out, the criminals do not stop until the victim ends communication or contacts law enforcement.
According to the suit, an individual convinced Augustine of a romantic connection and successfully got her to move fraudulent proceeds. Augustine was confronted by an FBI agent it, about her suspicious activities in January 2023 but seemingly ignored the advice.
Despite these, Augustine continued her operations by registering a limited liability company and opening a new bank account in its name in April 2023. IRS Criminal Investigation special agents visited her at her home in May 2023 to discuss her unusual financial transactions and reiterated the definition of her actions as illegal.
Thomas F. Murdock, Special Agent in Charge at IRS CI, said that falling for bad characters romantically can involve money laundering activities. Keeping this in mind, his agency, collaborating with other law enforcement, works to raise awareness among elderly communities.
Augustine is accused of transferring nearly $400,000 in fraudulent proceeds after multiple warnings by federal officers. The lawsuit seeks a permanent injunction against her to prevent any future involvement in money transferring activities. Each case is being handled by FBI and IRS CI agents, while Assistant U.S. Attorney Adam Hanna is prosecuting with help from Assistant U.S. Attorney Scott Verseman.
As a part of the Department of Justice's Elder Justice Initiative, programs are developed to educate older community members about scam operations. For more information or to schedule a presentation, contact Lauren Barry at [email protected]. If you suspect involvement in a money mule scheme, contact FBI Springfield immediately.
