The United States government has arrested five international fugitives wanted by Germany, which charged the individuals for their roles in a mega fraud.
The criminal network, in cahoots with German payment processors, defrauded thousands of victims of over €300 million and created a shadow financial system in the European nation.
The fugitives include four U.S. citizens, Medhat Mourid, Andrew Garroni, Guy Mizrachi, Ardeshir Akhavan, and Canadian national Tunde Benak.
Following the takedown in the Central District of California by the U.S. Marshals Service, the quintet made initial appearances in federal court on Wednesday.
They allegedly defrauded victims in violation of German law by creating millions of recurring, fraudulent debit or credit card charges from fictitious merchants.
The fugitives, who will be extradited, orchestrated the scheme by deliberately keeping monthly charges on credit cards below €50 to avoid suspicion by the victims.
According to German authorities, the charges were linked to fictitious companies using fake websites that were only accessible via direct links or URLs.
The network operators then colluded with German payment service processors – including executives and compliance officers – to process the payments.
The U.S. Department of Justice’s Office of International Affairs (OIA) said the former employees and officials of the payment companies are among those apprehended.
The operation by the U.S. Marshals Service involved arrests and searches in Canada, Cyprus, Germany, Italy, Luxembourg, Spain, Singapore, the Netherlands, and the United Kingdom.
