A man prosecutors describe as the central figure in a $250 million scheme that swindled elderly Americans out of their savings was arrested at JFK International Airport in New York as he prepared to board a flight to Saudi Arabia.
Muzamil Ahmed was taken into custody on several Tarrant County, Texas, warrants charging him with engaging in organized crime for theft, financial abuse of the elderly, and money laundering. He had been indicted in Tarrant County on August 28, according to CBS News.
Tarrant County District Attorney Phil Sorrels said investigators believe Ahmed ran the operation’s financial machinery, using shell corporations to launder stolen funds, funneling proceeds through a gold refinery, converting gold and cash into cryptocurrency, and moving the money overseas.
“Investigators believe Muzamil Ahmed is a central figure in this operation. He used shell corporations to launder stolen money to funnel proceeds to a gold refinery, converted gold and cash to cryptocurrencies, and moved the money out of the country,” Sorrels said.
Sorrels noted the irony of Ahmed’s travel plans, saying he “caught a flight to Tarrant County and landed in our jail” instead of reaching Saudi Arabia.
Two other men were arrested at the same time, one in Chicago and another in Newark, New Jersey. The broader case has produced more than 40 indictments, and prosecutors say the scheme victimized more than 200 people, most of them in the United States.
How the scam worked
According to investigators, the scammers told elderly victims their bank accounts and investments had been compromised by hackers and instructed them to convert their assets into gold to protect their money. Victims were then told to hand the gold over to men posing as federal officers, who claimed they would transport it to secure storage. Instead, the gold was stolen outright.
Investigators say Ahmed’s crew melted down the stolen gold and recast it into other forms to avoid detection before laundering the proceeds.
Authorities say the losses were devastating for some victims. At least one elderly man died by suicide after losing $2 million to the scheme, according to investigators.
FBI warns of impersonation tactics
The FBI has reiterated that federal agents will never ask members of the public to hand over cash, gold, or cryptocurrency, and will not conduct such business through personal visits or email. The bureau urges anyone who has already interacted with someone requesting gold or cash under these circumstances to contact the FBI immediately.
