The U.S. Department of Justice has secured the forfeiture of more than $5.3 million linked to a business email compromise scheme that defrauded a Massachusetts-based workers union, federal officials said Wednesday.
The forfeiture follows a default judgment and final order issued by the court, concluding a civil forfeiture action initiated in June 2024. The funds, which were laundered through multiple domestic and international accounts, have now been recovered by the federal government.
Union misled by spoofed email
According to the government’s complaint, in January 2023 the Dorchester-based union received an email that appeared to be from its investment manager. The message, however, was fraudulent and directed the union to transfer $6.4 million to a bank account controlled by third parties involved in the scam.
Once the transfer was made, the funds were moved through a complex network of accounts — including attempted transfers to a cryptocurrency exchange and foreign financial institutions in Hong Kong, China, Singapore, and Nigeria. Investigators traced a portion of the funds to seven U.S.-based bank accounts, which were subsequently seized.
Federal investigation leads to recovery
The United States Secret Service conducted the investigation, with support from the Department of Justice’s Criminal Division and the U.S. Attorney’s Office for the District of Massachusetts.
“The judgment is the result of a civil forfeiture complaint filed by the United States in June 2024 seeking the forfeiture of the funds,” the Justice Department said in a statement.
The announcement was made by Matthew R. Galeotti, head of the Criminal Division; U.S. Attorney Leah B. Foley; and William Mancino, special agent in charge of the U.S. Secret Service.
Trial attorneys Jasmin Salehi Fashami and Adrienne Rosen of the DOJ’s Money Laundering and Asset Recovery Section, along with Assistant U.S. Attorney Matthew Lyons, prosecuted the case.
