SEATTLE — A former postal worker has been arrested and charged in connection with a fraudulent billing scheme that targeted thousands of businesses and charities in Washington state.
Johnny Nguyen, 49, of San Jose, California, was arrested on June 17 and now faces 11 federal counts of mail fraud and money laundering, according to an indictment filed in U.S. District Court in Seattle.
Prosecutors say Nguyen mailed official-looking letters on fake Washington state letterhead demanding payment for business and nonprofit filing fees. The fraudulent documents appeared to come from the Corporations & Charities Division of the Secretary of State’s office — a real agency — but directed payments to PO boxes rented by Nguyen, including some in Olympia.
Victims were instructed to make checks payable to a company called “Business Entities,” which Nguyen had registered months earlier in California. Many recipients complied, believing the letters were legitimate. According to the indictment, Nguyen received over 350 checks from Washington totaling $82,000, and another 60 from California worth $8,600.
Authorities say they intercepted an additional 1,700 checks totaling $395,000 before Nguyen could deposit them.
Nguyen is accused of using complex financial transactions to launder the money and obscure its origin.
The Washington Secretary of State’s Office and the Attorney General’s Office warned businesses about the scam after receiving numerous complaints last year. Officials noted red flags in the fraudulent mailings, such as a Sacramento return address and a QR code linking to a non-government (.org) website.
“This scheme preyed on the trust businesses place in our state institutions,” said Secretary of State Steve Hobbs. “Our office is committed to equipping businesses with the tools they need to avoid these kinds of scams.”
The U.S. Attorney’s Office in Seattle urges businesses to verify any official-looking communication by calling agencies directly using contact information listed on .gov websites.
Nguyen is scheduled to appear in court on July 1. Prosecutors are seeking the forfeiture of all illicit funds.
