Massive elder fraud network uncovered and more

Four men extradited in $5 million grandparent scam

Four Dominican nationals were extradited to the U.S. for allegedly running a transnational elder fraud operation that targeted hundreds of older adults across the country.

Prosecutors say the scheme, operated from Dominican Republic call centers, deceived victims into believing their grandchildren and other relatives were in legal trouble and needed money. More than 400 victims lost at least $5 million to the scheme.

According to court documents, callers posing as relatives and attorneys persuaded victims to hand over cash to “runners” in the U.S. or ship money through the mail. Funds were allegedly laundered back to the Dominican Republic.

The defendants — Oscar Manuel Castanos Garcia, Joel Jose Cruz Rodriguez, Edward Jose Puello Garcia and Joel Francisco Mathilda Leon — were arrested in August and extradited to the U.S. in late September. They face charges of conspiracy to commit mail and wire fraud and money laundering conspiracy. Each charge carries a sentence of up to 20 years in prison.

Miss Controversy: Pageant owners entangled in fraud and trafficking scandals

Miss Universe co-owners based in Thailand and Mexico face serious legal troubles. A Thai court issued an arrest warrant for Jakkaphong “Anne” Jakrajutatip, the CEO of JKN Global Group, after she failed to appear in court over a fraud case involving corporate bonds worth 30 million baht (about $930,000). JKN, which bought the rights to Miss Universe in 2022, is undergoing debt rehabilitation after defaulting on payments totaling roughly $93 million.

In an unrelated case, Mexican businessman Raúl Rocha Cantú, who owns 50% of Miss Universe through Legacy Holding Group, is under investigation for alleged organized crime activities, including drug and arms trafficking and fuel theft. Mexican authorities have frozen his bank accounts, and prosecutors say he has been under scrutiny since late 2024.

The Miss Universe Organization hasn’t commented on the allegations, which come amid mounting controversies, including claims of rigging at the 2025 pageant and financial instability within JKN.

Flood control corruption scandal sparks arrests and protests

Philippine President Ferdinand Marcos Jr. announced the arrest of seven suspects in a massive corruption scandal involving flood control projects. The scheme allegedly led to substandard or nonexistent infrastructure across the typhoon-prone nation, fueling public outrage and nationwide protests.

The scheme concerns a river dike project in Oriental Mindoro worth 289 million pesos ($4.8 million), linked to former lawmaker Zaldy Co and the construction firm Sunwest Corp owned by his family. Marcos vowed that senators, House members and wealthy contractors implicated in the alleged scheme will face criminal graft and plunder charges.

The scandal has triggered large demonstrations, including rallies led by Catholic clergy and civil society groups demanding accountability. Marcos urged suspects to surrender and promised no special treatment, while law enforcement seeks fugitives abroad with Interpol assistance.

Two executives convicted in $233 million ACA fraud scheme

A federal jury convicted Cory Lloyd, president of an insurance brokerage firm, and Steven Strong, CEO of a marketing company, for orchestrating a massive fraud scheme involving Affordable Care Act (ACA) health plans. Trial evidence showed Lloyd and Strong conspired to enroll consumers in fully subsidized ACA plans by filing false applications for individuals who didn’t meet income requirements. Under the ACA, those who are eligible receive tax credits upon enrollment in an ACA plan.

The yearslong scheme attempted to collect more than $233 million in fraudulent subsidies; the federal government paid at least $180 million. Both men face up to 20 years in prison for conspiracy and fraud charges. Officials called the case one of the largest ACA-related frauds to date, emphasizing ongoing efforts to protect taxpayer dollars and hold perpetrators accountable.

Crystal Zuzek is associate editor of Fraud Magazine. Contact her at czuzek@acfe.com.