Today in Boston, a civil forfeiture action has been filed by the United States government, targeting more than $5 million tied to a sophisticated cyber scam against a Dorchester workers union. According to a press release from the Department of Justice, the action is a direct counter to a business email compromise (BEC) scheme in which the union was defrauded when trying to transfer funds meant for an investment consulting firm.
The complaint details an elaborate deception that began in January 2023. A spoofed email, masquerading to be from the union’s consulting firm, requested a payment update. Covered by a veil of legitimacy—the email address had been altered only by a single letter—the union was instructed to reroute a hefty $6.4 million payment to a different bank account. Caught in the deception, the union complied and transferred the money as instructed by what they thought was a trusted consultant’s email.
Investigators then followed the money's digital trail through a labyrinth of bank accounts, encompassing several countries including Hong Kong, China, Singapore, and Nigeria. Some of the ill-gotten gains were even channeled toward a cryptocurrency exchange in an attempt to evade capture. The persistent efforts of investigators proved fruitful, allowing them to pinpoint and seize assets from seven U.S.-based banking accounts tied to the fraud.
Acting U.S. Attorney Joshua S. Levy remarked on the gravity of the situation, stating, "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." Levy further emphasized steps the authorities can undertake when such incidents are reported by hopeful victims to recover stolen assets. "We hope today’s action helps restore some level of stability and justice for those impacted by fraud," he told the Department of Justice.
Authorities including Acting Assistant Attorney General Nicole M. Argentieri and Special Agent in Charge Andrew Murphy of the Secret Service's Boston Field Office joined Levy in announcing the forfeiture. Matthew M. Lyons and Trial Attorneys Jasmin Salehi Fashami and Adrienne E. Rosen are spearheading the legal proceedings. The department also encourages victims of cybercrimes to come forward and report to [email protected] — a channel for those beleaguered by cryptocurrency scams, romance scams, investment scams, and the like.
It should be noted that the accusations within the complaint, along with the United States' forfeiture claims, are still allegations at this point. The government bears the burden of proving, by a preponderance of the evidence, that the seized properties were implicated in the scam. If successful, the court will order the complete forfeiture of assets connected to any claimed defendant.
