A federal grand jury in Rhode Island has indicted a New York resident for allegedly participating in a fraud and money laundering scheme that defrauded over eight million dollars from various businesses, including a Rhode Island law firm. The announcement was made by Acting United States Attorney Sara Miron Bloom.
The indictment accuses Tushal Rathod, 45, from Baldwinsville, NY, of several charges including wire fraud conspiracy, wire fraud, aggravated identity theft, and money laundering-related offenses. According to the indictment, Rathod collaborated with individuals he met online to receive fraudulent funds and launder them through different businesses and financial accounts. He allegedly retained about 10% of the proceeds for himself.
The scheme reportedly involved business email compromise, account takeover, and counterfeit checks. Victims include a Rhode Island law firm defrauded of more than $163,200; a California credit union defrauded of approximately $8 million; and an Information Technology company losing $154,900.
Details from the indictment suggest that Rathod opened business bank accounts at multiple institutions to receive fraudulent funds and recruited others to do the same. He monitored these accounts’ activities and shared account information with co-conspirators. Additionally, Rathod is accused of creating false documents to access deposited funds which he then withdrew or transferred to conceal their origins. Some proceeds were converted into Bitcoin.
It is important to note that an indictment is merely an accusation; Rathod is presumed innocent until proven guilty.
Assistant United States Attorney Sandra R. Hebert is prosecuting the case following an investigation conducted by the FBI.
