American Earns on Grandmothers and Directors Through Ferrari and Jewelry

A 31-year-old man has been sentenced to 10 years in prison by the US Ministry of Justice for laundering over $4.5 million through a combination of Business Email Compromise (BEC) and romance fraud schemes, as reported here.

Court documents reveal that Malachi Mallings set up 20 bank accounts under the fictitious company name The Mollins Group LLC., which he used to facilitate the laundering of fraudulent proceeds from 2019 to July 2021.

The sophisticated scheme involved BEC attacks targeting medical insurance programs, private companies, and other organizations, as well as Romance Scam schemes specifically designed to defraud the elderly.

BEC attacks involve cybercriminals tricking unsuspecting individuals into sending money or sensitive information through various social engineering tactics. The attackers often use compromised accounts to send phishing emails to company suppliers, instructing them to make payments to fraudulent accounts.

Mallings and his associates engaged in financial transactions to conceal the illicit funds and used the proceeds to purchase high-end luxury items such as cars and jewelry.

Specific instances cited in the case include Mallings laundering $310,000 fraudulently obtained from the Medicaid program meant for hospital reimbursements and using $260,000 from a Romance Scam fraud to purchase a Ferrari.

In January 2023, Mallings pleaded guilty to conspiracy to launder money and seven additional charges related to money laundering offenses.

/Reports, release notes, official announcements.