Federal prosecutors in Boston announced Wednesday their efforts to assist a union in recovering approximately $5.3 million stolen through a sophisticated business email compromise (BEC) scheme.
The union, headquartered in Boston’s Dorchester neighborhood, fell victim to the scheme, which involved a spoofed email that led to the unauthorized transfer of $6.4 million to fraudulent bank accounts.
The government’s investigation revealed that the funds were redirected to various financial institutions, including a cryptocurrency exchange and foreign accounts in China, Singapore, and Nigeria. Fortunately, about $5.3 million of the stolen money was frozen in domestic U.S. accounts at JPMorgan Chase and Texas Bank and Trust. These funds are believed to be proceeds from wire fraud or money laundering, and the government is working to return them to the union.
Acting Massachusetts U.S. Attorney Joshua S. Levy highlighted the severity of BEC fraud schemes, noting the significant financial and emotional harm they cause by exploiting trusted communication channels. “Today’s civil forfeiture action demonstrates that when victims report such misconduct to the authorities, there may be steps we can take to recover stolen funds,” Levy said. “We hope today’s action helps restore some level of stability and justice for those impacted by fraud.”
