U.S. arrests Nigerian, four others for €300m International fraud scheme
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German prosecutors allege that the group coordinated a large-scale fraud by generating millions of small, recurring debit and credit card charges from fictitious merchants. To avoid detection, the charges were deliberately kept below €50 and linked to fake companies operating fraudulent websites accessible only through direct URLs.
The United States has arrested five international fugitives, including a Nigerian national, following a request from the Federal Republic of Germany over their alleged involvement in a massive financial fraud network that defrauded thousands of victims of more than €300 million.
According to the U.S. Department of Justice, the suspects, identified as U.S. citizens Medhat Mourid of Woodland Hills, Andrew Garroni of Los Angeles, Guy Mizrachi of Agoura Hills, Ardeshir Akhavan of Irvine, and Canadian national Tunde Benak, a Nigerian residing in Irvine, were apprehended in California by the U.S. Marshals Service.
The arrests were made in response to an extradition request by German authorities, who accused the defendants of operating a sophisticated financial network that manipulated German payment service processors to create a shadow financial system.
German prosecutors allege that the group coordinated a large-scale fraud by generating millions of small, recurring debit and credit card charges from fictitious merchants. To avoid detection, the charges were deliberately kept below €50 and linked to fake companies operating fraudulent websites accessible only through direct URLs.
Investigators say the operators collaborated with corrupt executives and compliance officers within German payment processing firms to channel the proceeds, allowing the scheme to thrive undetected for years.
The U.S. Department of Justice’s Office of International Affairs worked with the U.S. Attorney’s Office for the Central District of California and German authorities to ensure that the arrests complied with legal and extradition protocols.
The coordinated operation also included simultaneous arrests and searches in Germany, Italy, Luxembourg, Spain, Cyprus, the Netherlands, the United Kingdom, Canada, and Singapore.
Acting Assistant Attorney General Matthew Galeotti, First Assistant U.S. Attorney Bill Essayli, and U.S. Marshals Service Director Gadyaces S. Serralta confirmed the arrests, describing the takedown as a major step in dismantling a transnational financial crime network that spanned multiple continents.
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