Department Of Justice Charges Unprecedented Number Of Elder Fraud Defendants Nationwide And Launches Hotline

Knoxville, Tenn. – U.S. Attorney J. Douglas Overbey of the Eastern District of Tennessee joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale today in announcing the largest coordinated sweep of elder fraud cases in history.  This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep.  In each case, offenders allegedly engaged in financial schemes that targeted or affected seniors.  In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.

Two cases from the Eastern District of Tennessee:

Joshua Small, 52, was sentenced to 30 years in prison and Joni Amber Johnson, 36, was sentenced to 25 years in prison, for their roles in a conspiracy to assault, kidnap, and rob elderly victims. 

Christina Erin Myers, 37, pled guilty to one count of wire fraud and one count of money laundering.  The defendant admitted to engaging in a scheme to defraud elderly individuals by diverting funds for the purchase of real estate through marketing of non-existent senior communities and investment opportunities.   

Attorney General Barr made the announcement at an event in Florida entitled "Keeping Seniors Safe," which outlined his vision for protecting older Americans from financial harm.  The event focused special attention on the threat posed by foreign-based fraud schemes that victimize seniors in large numbers.  During the event, the Attorney General declared "Prevention and Disruption of Transnational Elder Fraud" to be an Agency Priority Goal, making it one of the Department’s four top priorities.

“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Attorney General William P. Barr.  “This year, the Department of Justice prosecuted over 400 defendants, whose schemes totaled more than a billion dollars.  I want to thank the men and women of the Department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases.  The Department is committed to stopping the full range of criminal activities that exploit America’s seniors.”

“We have made great strides this year towards prosecuting those who seek to victimize some of our nation’s most vulnerable citizens through scams and financial fraud,” said U.S. Attorney Overbey.  “I would urge the public to continue bringing instances of elder fraud to the federal government’s attention.  Protecting our seniors remains one of the top priorities for the U.S. Attorney’s Office, and we will continue to work with our local, state, and federal law enforcement partners to investigate and prosecute those who seek to cause harm to senior citizens within our district.”

This interactive map provides information on the elder fraud cases highlighted by today’s sweep announcement. 

Elder Fraud Hotline

Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud.  The Hotline will be staffed by experienced case managers who can provide personalized support to callers.  Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed.  When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller.  The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).

For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a “money mule” to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries.  Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud.  The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases.  Agents and prosecutors in more than 85 federal district participated in this effort to halt the money flow from victim to fraudster.  These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.

These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.

The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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