Two men have found themselves in hot water after being indicted in a sophisticated money laundering scheme involving over $2 million siphoned from elder victims caught up in 'grandparent scams,' federal prosecutors in Los Angeles say. The pair, James Wesley Jackson III, known as “Imperial,” and Christopher Fagon, were charged by a grand jury and are facing hefty prison sentences if convicted.
Jackson, 42, was collared by the FBI earlier and pleaded not guilty to charges of conspiracy to commit money laundering and bank fraud. Attorney's Office stated. Meanwhile, his co-defendant, Fagon, 45, formerly of Beverly Grove and purported ring leader, is believed to be laying low in or near Toronto, Canada.
The charges laid out claim that the defendants coordinated a complex network of 'money mules'—individuals who unwittingly or otherwise participate in the laundering process by using their bank accounts or addresses to move the illicit funds. Prosecutors allege that Fagon was a mule manager and helped create business entities and open bank accounts using stolen identities. Both men allegedly performed transactions designed to bury the true origins of the fraudulently obtained funds.
The court heard how the scam reached victims as far afield as Pennsylvania, with laundered funds circling back through California's financial veins. The indictment also mentions an elaborate bank scam involving an account set up in a victim's name, with nearly $83,000 at stake. Jackson, after his day in court, was permitted to post bond while a trial date has been carved out for February 6, 2024.
Underscoring the gravity of these offenses, the conspiracy to commit money laundering charge might lead to 20 years in federal prison, while conspiracy to commit bank fraud could tack on an extra 30 years. Monica E. Tait, an Assistant United States Attorney, is spearheading the prosecution of this case, which stems from the work of the Vulnerable Communities Task Force, a group focusing on crooks who exploit communities with less propensity to report crimes or seek help from authorities.
