Two Indian-origin defendants sentenced for elder fraud scheme

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U.S. Attorney for the Western District of Michigan Mark Totten announced August 16, 2024, that two defendants, both of Indian origin, and both residents of New York, were sentenced to federal prison for their roles in an international fraud conspiracy that stole over $11 million from mostly senior citizens in multiple states.

A victim in West Michigan lost as much as $398,000 to the conspiracy, a press release from the US Attorney’s Office for the Western District of Michigan said.

Jayesh J. Panchal, 55, of Hicksville, New York, was sentenced to serve 78 months in federal prison and ordered to pay $7,930,287 in restitution to 40 victims of the conspiracy.

Vijaya C. Shetty, 53, of Flushing, New York, was sentenced to 63 months in federal prison and ordered to pay $596,800 in restitution to victims. Shetty pleaded guilty in February 2024 and Panchal pleaded guilty in April 2024.

US District Judge Jane M. Beckering, who imposed the sentence, said Panchal and Shetty were involved in a “horrific” fraud scheme that “preyed upon some of our most vulnerable citizens, the elderly.”  She noted that many of the victims “worked, saved, and scrimped their whole lives and now have little or nothing to live on.”

The fraud scheme began when victims received a pop-up message on their computers warning that a virus had infected their devices.  The messages urged the victims to call a number to get help. When the victims called the number provided, they got a response from someone claiming to work for a tech company, such as Microsoft or Apple.  In truth, they were scammers located in India, who scared the victims into giving money to the conspiracy with a variety of different ruses.

In one version of the scam, victims were told that their bank accounts had been compromised and they needed to withdraw all their cash and give it to fake “federal agents” for safekeeping.  In another version, victims were told that their computers had been infected by a virus and they needed to pay for technical support.  In a third version, victims were told that they had been identified in a criminal investigation and needed to turn over money to clear their names.

“Regardless of which ruse was used, the result was the same: victims were convinced to give $11 million money to the scammers,” the press release said. Victims did this during in-person meetings with fake “federal agents,” by mailing boxes of cash to addresses provided by the scammers, by wire transfers to bank accounts controlled by the scammers, or through gift cards they purchased at the direction of the scammers.

“Panchal and Shetty traveled throughout the United States at the direction of the leaders of the conspiracy in India to collect millions of dollars in cash from the victims,” the press release said.  They also laundered fraud proceeds by depositing cash into various bank accounts.