Nigerian, 4 Americans in big trouble over €300m global fraud
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According to the U.S. Department of Justice, the arrests were made at the request of the Federal Republic of Germany, which has charged the suspects with orchestrating a sophisticated financial network that defrauded thousands of victims and created what investigators described as a “shadow financial system.”
A Nigerian-Canadian, Tunde Benak, and four Americans have been arrested by United States authorities for their alleged involvement in a €300 million fraud scheme that rocked Germany’s financial sector.
The five suspects, Medhat Mourid of Woodland Hills, Andrew Garroni of Los Angeles, Guy Mizrachi of Agoura Hills, Ardeshir Akhavan of Irvine, and Tunde Benak, a Canadian national of Nigerian descent, were apprehended in coordinated raids by the U.S. Marshals Service in California.
According to the U.S. Department of Justice (DOJ), the arrests were made at the request of the Federal Republic of Germany, which has charged the suspects with orchestrating a sophisticated financial network that defrauded thousands of victims and created what investigators described as a “shadow financial system.”
German authorities allege that the suspects, working through fictitious online merchants and fake payment processors, generated millions of small fraudulent charges on debit and credit cards. Each charge, kept below €50, was designed to slip under the radar of unsuspecting customers and financial monitors.
Investigations revealed that the group partnered with German payment processors, including some of their executives and compliance officers, to process the fraudulent payments and launder the proceeds across several countries.
The U.S. Office of International Affairs (OIA), in collaboration with German prosecutors, coordinated the arrests and is overseeing extradition proceedings for the five suspects.
Acting Assistant Attorney General Matthew Galeotti, First Assistant U.S. Attorney Bill Essayli, and U.S. Marshals Director Gadyaces S. Serralta announced the arrests, describing them as a “significant breakthrough” in the fight against transnational financial crimes.
The DOJ said simultaneous operations were also carried out in Germany, Italy, Luxembourg, Spain, Cyprus, the Netherlands, the United Kingdom, Canada, and Singapore, targeting members of the global fraud network.
The suspects are currently in custody and awaiting extradition to Germany, where they will face charges of fraud, conspiracy, and money laundering.
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