Five California residents were arrested Wednesday at the request of Germany for an elaborate fraud scheme involving fake recurring card charges from fictitious merchants, U.S. officials said.
German authorities said the suspects intentionally kept monthly charges under €50 to avoid detection. The men identified are Medhat Mourid of Woodland Hills, Andrew Garroni of Los Angeles, Guy Mizrachi of Agoura Hills, Ardeshir Akhavan of Irvine, and Canadian citizen Tunde Benak of Irvine.
The suspects allegedly scammed thousands of victims, stealing more than €300 million and creating a “shadow financial system” in Germany. According to the Department of Justice, the network colluded with German payment processors, including executives and compliance officers, to process the fraudulent transactions.
The U.S. Marshals Service arrested the Southern California residents and will extradite them to Germany following their initial federal court appearances.
