Scammers’ car wash

Two Jamaican lottery scammers directed their elderly American victims to deposit millions of dollars into accounts they used to operate separate used-car dealerships in Jamaica, United States (US) authorities have charged.

The allegations were detailed in documents filed in a US court in the case against Jordan Trought, the Jamaican lottery scammer who pleaded guilty for his role as a high-ranking member of an international fraud scheme that stole more than US$9 million, or about J$1.4 billion, from more than 200 elderly American citizens through a sweepstakes scam.

The status of the charges against the other Jamaican jointly charged with Trought was not disclosed in a statement released by the US Attorney’s Office for the Southern District of New York in June.

The case provides the clearest indication that players in the deadly scam are increasingly turning to the fast-growing used-car industry to launder their ill-gotten gains, according to law-enforcement operatives and industry stakeholders.

“Because of the very limited regulations on it (the used car sector), it’s a very easy means by which they can move money. It’s one of those gaps that have to be plugged and there’s some work that is being put into it,” said one law-enforcement operative.

Automotive auction

An indictment filed in the US District Court for the Southern District of New York and obtained by The Gleaner revealed that Trought and his compatriot each had accounts at a “large automotive auction business” through which they purchased vehicles for their respective used-car dealerships.

It claimed that on March 7, 2022, an elderly American woman, identified as ‘Victim 3’, was directed to deposit a total of US$22,000, or about J$3.5 million, in cashier’s cheques into the account operated by Trought’s co-accused.

Victim 3 was first contacted via telephone in February 2022 by someone who identified himself as ‘David Miller’ from a sweepstakes company and who falsely told her she had won a multimillion-dollar prize and needed to pay taxes to collect it, according to the indictment.

Three days after the first deposits, she placed US$22,953, or J$3.6 million, into the same account and another US$19,000, or J$3 million, on March 17.

“In total, Victim 3 sent at least approximately US$114,000 in payments to various individuals at the direction of the perpetrators of the elder fraud scheme,” the indictment said.

Further, it alleged that through an email sent on or about March 11, 2024, from an email address linked to ‘David Miller’ and used by Trought’s co-accused, another elderly American woman, identified as ‘Victim 4’, received a US$39,633, or J$6.3 million, invoice for a vehicle that was being sold at an auction approximately 1,000 miles from her home.

The email also contained wire transfer information for the seller of the vehicle.

On March 25 and April 15, 2024, Victim 4 used a commercial copy centre to email receipts to Trought’s co-accused showing that wire transfers totalling US$39,633 were made to the account he provided, the indictment alleges.

“In total, Victim 4 sent at least approximately US$450,000 in payments to various individuals at the direction of the perpetrators of the elder fraud scheme,” it claimed.

Lynvale Hamilton, president of the Jamaica Used Car Dealers Association, said the use of used-car dealerships to “wash” money has been a concern “for a while now” and questioned the vetting process for new players.

“We are talking about persons seemingly into lottery scamming using used-car dealerships as a protection so to speak to wash their money,” he charged during an interview with The Gleaner yesterday.

“It doesn’t appear to be changing. In fact, it does appear to be getting worse and I think it’s something that needs to be dealt with speedily,” he said, calling for stronger action from the Government and law-enforcement agencies.

Pointing to the potential adverse financial impact on legitimate dealers, Hamilton said new players who enter the industry to wash ill-gotten funds undercut others with significantly lower prices “that you can’t match”.

“It is really destroying the industry for legitimate dealers,” he added.

Trought pleaded guilty to conspiracy to commit wire fraud, mail fraud and bank fraud and faces a maximum sentence of 30 years in prison when he is sentenced later this year, according to the statement from the US Attorney’s Office for the Southern District of New York. He has also agreed to make restitution and pay forfeiture amounting to US$6.1 million, it said.

livern.barrett@gleanerjm.com