Justice Department Recovers $5M in Money Laundering Case Tied to Union Email Scam

In a major success for financial cybercrime enforcement, the United States Department of Justice has secured the forfeiture of more than $5.3 million in connection with a sophisticated business email compromise (BEC) scheme that defrauded a Massachusetts workers union. The funds, which were traced to multiple domestic and international financial institutions, were ordered forfeited following a default judgment and final order issued by the court.

The civil forfeiture complaint, originally filed in June 2024, outlined how in January 2023, a workers union based in Dorchester, Massachusetts, was deceived into transferring approximately $6.4 million to a fraudulent bank account. The union had received a spoofed email that appeared to come from its legitimate investment manager, prompting the erroneous transfer.

Following the initial theft, the funds were rapidly laundered through a complex web of domestic and international accounts, including attempted transfers to cryptocurrency exchanges and financial institutions in Hong Kong, China, Singapore, and Nigeria. The Department of Justice, working alongside the United States Secret Service, was able to trace a significant portion of the proceeds to seven domestic bank accounts. These accounts were swiftly seized as part of the recovery operation.

“This judgment reflects our unwavering commitment to disrupting cyber-enabled fraud schemes and reclaiming stolen assets,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Through collaboration with law enforcement partners, we are ensuring victims of fraud are not left without recourse.”

US Attorney Leah B. Foley for the District of Massachusetts and Special Agent in Charge William Mancino of the US Secret Service also commended the cross-agency coordination that made the recovery possible.

The case was investigated by the US Secret Service and prosecuted by Trial Attorneys Jasmin Salehi Fashami and Adrienne Rosen of the Criminal Division’s Money Laundering and Asset Recovery Section, along with Assistant US Attorney Matthew Lyons.

This outcome highlights the ongoing threat posed by BEC schemes to businesses and organisations worldwide, and reinforces the importance of cybersecurity vigilance and swift legal action to recover unlawfully obtained funds.

Read the press release here.