Federal investigators charged 13 people in connection with what they describe as a “cruel and malicious” grandparent scheme that resulted in hundreds of elderly people losing millions of dollars.
U.S. Attorney for Massachusetts Leah Foley said the investigation got underway when Uber, whose drivers appeared to have been unknowing participants, flagged the scam to the FBI.
Foley announced the charges during a news conference Tuesday at the Moakley Federal Courthouse in Boston. Two people remain at large in the Dominican Republic, where the scam was allegedly based, and two are at large in the United States, Foley said.
The U.S. attorney said organized call centers in the Dominican Republic were used to target elderly victims, many in Massachusetts. Oscar Manuel Castanos Garcia was the alleged leader of the call center.
“Their goal was to trick our grandparents, parents, neighbors and friends into handing over their life savings under false pretenses. And they succeeded in stealing millions,” Foley said.
The average age of the victims was 84 years old and the total amount of money lost surpassed $5 million.
U.S. Attorney for Massachusetts 
How do “grandparent scams” work?
Foley said people would receive a call from someone pretending to be their grandchild. The call center would use an “opener,” saying things like, “I’ve been in an accident,” or “I need money to post bail.”
Then a “closer” would get on the line and pretend to be a lawyer demanding cash.Â
Once the person on the other line was convinced, they were directed to hand over thousands of dollars in cash to “runners,” often using Uber drivers who Foley said did not know they were part of a scam.
The suspects would call an Uber driver and use an excuse, saying something like their grandmother is putting documents in a car and transporting them. Other times, they’d have the Uber pick up the elderly person and bring them to the bank.
The money would be brought to someone else, who allegedly laundered it to the suspects.
Uber reported scam to FBI
There were about 400 victims, 50 from the United States. Foley said she believes there were other victims who never reported crimes because they were too ashamed of what happened to them.
The Uber Global Security team flagged the scam to the FBI. Foley said Uber has since made changes to how it trains its drivers so they can help prevent similar incidents.
“I’m here to say that we have had enough of this. Preying on our elderly and the alleged conduct by these depraved individuals is ruthless and immoral,” Foley said.
In a statement, Uber said it continually monitored the alleged suspects while law enforcement investigated in an effort to prevent further losses.
“This case exemplifies how Uber uses anti-fraud technology to swiftly detect and proactively report suspicious activity to law enforcement,” a spokesperson for Uber said. “We commend the efforts of investigators who have worked diligently to bring these individuals to justice and help protect our communities. Uber takes fraud seriously and continues to invest in technology to help prevent, detect, and address it across our platform.”  Â
According to Foley, victims will most likely not get their money back. She said anyone who thinks they might be a victim should email USAMA.VictimAssistance@usdoj.gov or call 1-800-225-5324. The Justice Department website has resources for how to prevent similar scams in the future.
Grandparent scam suspects charged
The charges against the 13 individuals include conspiracy to commit mail fraud and wire fraud, along with money laundering conspiracy.
Castanos Garcia, 33, is among the nine people already in custody. Also arrested were Joel Jose Cruz Rodriguez, Edward Jose Puello Garcia, Joan Manuel Mathilda Leon, Luis German Santos Burgos, Gerardo Heriberto Nuñez Nuñez, Andry Joel Baez Santana, Chaman Samael Silverio Balbuena and Manuel Nicolas Rivera Cueto.
Ransel St. Arlin Tavarez Jimenez and Joel Francisco Mathilda Leon of the Bronx, New York remain at large. Also at large are Jose Osvaldo Polanco Batista of Winter Park, Florida and Jose Arony Fermin Vasquez of New Jersey.
