Introduction to Grandparent Scams
A West Los Angeles man pleaded guilty on Wednesday, Sept. 10, to helping launder $378,000 obtained from victims of “grandparent” scams who were defrauded with bogus claims that their relatives were in distress and in urgent need of funds.
James Wesley Jackson III, 44, entered his plea in Los Angeles federal court to one count of conspiracy to commit money laundering, according to the U.S. Attorney’s Office.
The Scheme and Charges
Sentencing was scheduled for Feb. 2. An indictment also charges Christopher Fagon, 47, who at the time of the scheme lived in the Beverly Grove neighborhood of Los Angeles and is now believed to reside in or near Toronto. Perpetrators of grandparent scams persuade victims to send money —purportedly to help relatives, often their grandchildren, who are typically described as being in legal trouble — to bank accounts, business entities and physical addresses specified by the scammers for the supposed purpose of assisting the relatives.
Role of Money Mules
The victims’ money often is initially handled by “money mules,” who allow their addresses or bank accounts to be used or agree to receive or negotiate cashier’s checks. Prosecutors said Fagon was a manager of money mules such as Jackson, who also recruited his own money mules. The indictment says the scheme laundered funds obtained from victims of grandparent scams who live in California and as far away as Pennsylvania.
Potential Penalties
The charge of conspiracy to commit money laundering carries a possible penalty of up to 20 years in federal prison, prosecutors noted. This severe penalty reflects the seriousness with which law enforcement agencies view these types of scams, which can have devastating financial and emotional impacts on the victims.
Conclusion
The guilty plea by James Wesley Jackson III marks a significant step in the efforts to combat grandparent scams and the money laundering schemes that support them. It highlights the importance of vigilance and education in preventing these scams, as well as the need for cooperation between law enforcement agencies to prosecute those involved. As authorities continue to investigate and prosecute these cases, it is crucial for the public to remain aware of the risks and to report any suspicious activities.
FAQs
What are grandparent scams?
Grandparent scams are types of fraud where scammers contact older adults, claiming that their grandchild or another relative is in trouble and needs money immediately. The scammers often create a sense of urgency to prompt the victim into sending money without verifying the situation.
How do money mules fit into these scams?
Money mules are individuals who allow their bank accounts or addresses to be used by scammers to receive and transfer funds obtained from fraud. They may be recruited by the scammers or act independently, often for a fee or under the guise of a legitimate job opportunity.
What is the potential penalty for conspiracy to commit money laundering in this context?
The charge of conspiracy to commit money laundering can carry a penalty of up to 20 years in federal prison, reflecting the serious nature of these crimes and their impact on victims.
How can people protect themselves from grandparent scams?
To protect themselves, individuals should be cautious of unsolicited calls or messages claiming a relative is in distress, verify the situation through independent means, and never send money without confirming the authenticity of the request. Educating family members, especially older adults, about these scams and their tactics is also crucial.
