Two California Men Face 30 Years Jail For $794,000 Elderly Fraud Scheme

Two California men, Ayman Alaaraj and Ahmad Nassar, are facing up to 30 years in jail for their alleged involvement in a scheme that targeted elderly victims, resulting in the theft of $794,000. The U.S. Attorney’s Office, Eastern District of California, has unsealed a 17-count indictment charging the brothers-in-law with bank fraud and aggravated identity theft.

According to court documents, in May 2023, Nassar took control of several bank accounts belonging to two elderly victims at two separate banks. He employed sophisticated techniques, including porting over the phone number of one of the victims, to bypass the banks’ two-factor authentication (2FA) protection. This method allowed Nassar, occasionally assisted by Alaaraj, to drain the accounts and accumulate unpaid credit card debts, leading to significant financial losses for the victims.

The stolen funds were then moved through pass-through accounts created under the victims' names and funneled $100,000 through Alaaraj’s businesses. The defendants transferred the money to themselves using various methods, including ATM cash withdrawals, personal checks, Western Union transactions, and Zelle transactions. They also used the stolen funds to pay credit cards, engage in online gambling, and purchase a Mercedes.

The case underscores the vulnerabilities in mobile 2FA systems and the need for enhanced security measures to protect individuals, particularly the elderly, from such fraudulent activities. The DOJ's investigation highlights the growing threat of cybercrime and the importance of raising awareness about the risks associated with mobile security. The incident serves as a reminder of the necessity for robust cybersecurity measures and continuous education on the risks of digital fraud.

If found guilty, Alaaraj and Nassar face up to 30 years of jail time and a $1 million fine for each count of bank fraud. Additionally, they face a mandatory prison term of two years and a fine of up to $250,000, or twice the gross gain or gross loss, for the aggravated identity theft count. The DOJ's investigation into the case is ongoing, and authorities are urging anyone with information related to the scheme to come forward.