Indian National Pleads Guilty in $6 Million Elder Fraud Gold Scheme

By Lalit K Jha

Washington, Nov 24: An Indian national has pleaded guilty in federal court to participating in an elder fraud conspiracy that caused victims to lose more than $6 million by coercing them into converting their life savings into gold bars, coins, and cash, federal prosecutors said Tuesday.

Syed M. Makki, 37, a citizen of India, pleaded guilty before US District Judge Greg Kays to one count of conspiracy to commit wire fraud, according to the U.S. Attorney’s Office for the Western District of Missouri. Prosecutors said Makki admitted to acting as a courier in the scheme from 2023 to March 2024, collecting gold bullion and cash from victims and delivering it to his co-conspirators.

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According to the plea agreement, conspirators installed malware on victims’ computers that included a phone number to call. “When the victims called, they falsely represented themselves as ‘Microsoft’ employees, banking officials, government employees, and law enforcement officers.” Prosecutors said the victims, most of whom were elderly, were convinced their identities had been compromised and that their bank deposits were unsafe.

“Conspirators convinced the victims… that their identities had been compromised, that their money was not safe in banks, and often that victims were assisting law enforcement.” With trust established, the perpetrators instructed the victims to liquidate their accounts and buy gold bullion using the proceeds.

Once the gold was delivered to victims’ homes, the fraudsters escalated their deception. “When the gold was delivered to the victims’ houses, conspirators directed the victims to provide the gold for ‘safekeeping’ to a co-conspirator, including Makki.” In some cases, they told victims to package the gold and address it to the “Department of Justice” using a specific individual’s name, further creating the illusion of dealing with legitimate authorities.

Makki and other couriers then collected the gold or cash and transported it across state lines. Prosecutors detailed a key incident in late March 2024 in which Makki retrieved a significant amount of bullion. “On March 25 and 26, 2024, Makki picked up 16 gold bars, weighing one kilogram apiece and worth more than $1 million, from victims in Littleton, Co. and Kansas City, Mo.”

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The following day, Makki attempted to deliver the gold to co-conspirators in Illinois. “On March 27, 2024, Makki transported the gold bars to Illinois to deliver them to co-conspirators. That date, Makki was arrested in possession of the gold bars by a Morgan County, Illinois, Deputy Sheriff and by an Illinois State Highway Patrol Sergeant.”

Authorities have identified ten victims to date who collectively lost more than $6 million.

Makki faces up to 20 years in federal prison without parole. A sentencing hearing will be set after the U.S. Probation Office completes its report, a media release said. 

[5WH/VS]

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