Burlington, VT – Canadian authorities have arrested 23 nationals in connection with a grandparent scam that defrauded elderly Americans of over $21 million, following an indictment returned by a U.S. federal grand jury in Vermont. The indictment, which was unsealed on March 4, alleges that between summer 2021 and June 2024, the individuals operated fraudulent phone schemes, targeting elderly victims across 40 U.S. states.
The scam involved phone calls made from call centers based around Montreal, Québec. The defendants would pose as relatives, typically grandchildren, claiming they had been arrested after a car accident and needed bail money. Other members of the group pretended to be attorneys, reinforcing the fabricated urgency of the situation. Victims were often told there was a “gag order” preventing them from informing others about the supposed arrest. They were then convinced to pay “bail” money, which was later collected by an individual posing as a bail bondsman.
The funds, often in cash or cryptocurrency, were funneled back to Canada. Law enforcement uncovered the scheme when Canadian authorities executed search warrants at call centers on June 4, 2024, and found several defendants actively targeting victims in Virginia.
Key Figures Behind the Scam
The indictment names several defendants, including Gareth West, Usman Khalid, Andrew Tatto, Stephan Moskwyn, and Ricky Ylimaki, who are accused of managing and orchestrating the call centers. These individuals face additional charges related to conspiring to commit money laundering, further complicating the investigation. The scam’s network operated across multiple countries, involving international financial transactions and criminal enterprises.
International Law Enforcement Collaboration
“This operation highlights the outstanding partnership between ICE Canada, Sûreté du Québec, and other international law enforcement agencies,” said Magdalena Sigur, ICE HSI Attaché for Ottawa. “The disruption of this criminal organization is a direct result of our strong cooperation.”
Acting U.S. Attorney Michael P. Drescher emphasized the meticulous efforts by U.S. authorities to uncover the extent of the scam, noting the invaluable assistance from the Sûreté du Québec and the Royal Canadian Mounted Police.
Impact on Victims
The scam primarily targeted vulnerable elderly Americans, with perpetrators preying on their emotions and deceiving them into thinking their loved ones were in grave danger. IRS-CI Acting Special Agent in Charge Thomas Demeo stated, “This operation underscores our commitment to safeguarding the American public, especially the elderly, from financial exploitation.”
Charges and Penalties
If convicted, the key defendants could face up to 40 years in prison. Other individuals involved face up to 20 years in prison.
The case continues under investigation by ICE, IRS-CI, U.S. Customs and Border Protection, and the Quebec Provincial Police, with support from the Royal Canadian Mounted Police.
For anyone who suspects they have been a victim of elder fraud, the National Elder Fraud Hotline (833-FRAUD-11) provides free assistance and resources.
