A 70-year-old Michigan woman lost more than $270,000 after scammers convinced her that federal authorities had issued warrants for her arrest on drug trafficking and money laundering accusations.
The Hazel Park woman first received an email that appeared to come from the Federal Trade Commission and told her there was a warrant for her arrest. She was instructed to contact the supposed agent handling the case, according to ClickOnDetroit.
The person she contacted told her she needed to pay money to clear the warrants and warned her not to call local police because officers would arrest her. Believing the threat was real, she cashed out pension accounts belonging to herself and her late husband and was also directed to buy gold.
By the time she contacted Hazel Park police several days later, she had handed over more than $270,000. Investigators eventually identified a 30-year-old man from Sacramento, California, who was extradited to Michigan and charged with two felony counts of false pretenses.
The Email Claimed Federal Authorities Wanted to Arrest Her
The scheme began with an unsolicited email carrying the name of the Federal Trade Commission. The message told the woman she was wanted by federal authorities and instructed her to contact the person supposedly handling the case.
After she made contact, the person posing as an agent claimed she faced warrants involving drug trafficking and money laundering. Police say she was told that money had to be paid to clear the warrants.
The scammers also warned her not to contact local police, claiming officers would arrest her if she did. That threat discouraged her from checking the story with the agency that could have immediately told her the warrants were fake.
She Cashed Out Pension Accounts and Bought Gold
The woman began liquidating retirement savings in response to the threats. Hazel Park police say she cashed out pension accounts belonging to herself and her deceased husband.
She was also instructed to purchase gold and turn it over as part of the supposed process for clearing the warrants. A few days after the first payment, the scammers contacted her again and demanded more money.
CBS Detroit reported that the repeated payments pushed her total loss above $270,000. Available police reporting does not provide a breakdown showing how much was delivered as gold and how much was paid through other methods.
Police Used Video and License Plate Data to Identify a Suspect
After the woman reported what had happened, Hazel Park investigators collected surveillance footage, obtained search warrants and used Flock license plate reader resources while trying to identify a suspect.
The investigation led police to a 30-year-old man from Sacramento. Authorities located him in California and extradited him to Michigan.
Police have not publicly identified the defendant by name in the available reports, so he is not being named here.
He Faces Two Felony False Pretenses Counts
Hazel Park police presented the investigation to the Oakland County Prosecutor’s Office, which authorized two felony counts of false pretenses against the Sacramento man.
He was arraigned in Hazel Park District Court on September 2. A judge set bond at $300,000 and ordered GPS monitoring if he is released. The charges are accusations and have not been proven in court. The defendant is presumed innocent unless convicted.
What to Do if an Email Says the FTC Wants Money
The Federal Trade Commission says it will never threaten someone with arrest, demand money or tell a consumer to transfer savings to protect them. The agency also says it will never instruct someone to withdraw cash or buy gold and give it to another person.
Anyone who receives an unexpected email, call or text claiming to come from the FTC should not use the phone number, link or contact information supplied in the message. The FTC recommends ending the communication and contacting the government agency independently through a phone number or website known to be legitimate.
Consumers should also avoid sending money through gift cards, cryptocurrency, wire transfers or payment apps to anyone claiming to represent a government agency. The FTC says government agencies will not contact people unexpectedly and demand payment or sensitive financial information through those methods.
Someone who has already sent money or provided personal information should stop communicating with the sender, contact any affected bank or financial institution and report the impersonation at ReportFraud.ftc.gov. If personal information was exposed, IdentityTheft.gov provides steps for securing accounts and recovering from identity theft.