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Dozens of Canadians are charged for scamming American grandparents out of $21 million

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Dozens of Canadians are charged for scamming American grandparents out of  million

Prosecutors say 25 Canadians have been charged in connection with a multimillion dollar “grandparent scam” targeting elderly Americans nationwide.

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Twenty-five Canadians have been charged with swindling hundreds of American seniors out of more than $21 million through what’s known as a “grandparent scam,” federal prosecutors announced Tuesday.

The Office of the United States Attorney for the District of Vermont said in a statement that the alleged perpetrators were indicted by a federal grand jury in late February.

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They range in age from their late-20s to mid-40s and all but one are based in Quebec province, which is home to Montreal. The announcement lists their names as well as the aliases they used, including Muscles, Elvis, Blondie, Happy, Honda and Toast.

All 25 are charged with conspiracy to defraud, while five of them are also accused of conspiring to commit money laundering.

Information about the defendants’ lawyers and court appearances was not immediately available, and the U.S. Attorney’s Office for the District of Vermont declined to elaborate as the case is ongoing.

Prosecutors say the scheme, which started in the summer of 2021, targeted elderly victims in 46 states.

“These individuals are accused of an elaborate scheme using fear to extort millions of dollars from victims who believed they were helping loved ones in trouble,” said Michael Krol, special agent in charge for Homeland Security Investigations in New England.

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How the alleged scheme worked 

A 14-page indictment unsealed on Tuesday accuses the group of operating an elaborate scheme based out of a network of call centers in the Montreal area, using technological means to make their calls look like they were coming from the U.S.

The participants would allegedly call elderly Americans — culled from spreadsheets with their personal information, including age and household income — and pretend to be a relative, typically a grandchild, who needed money for bail after a car crash.

They would falsely claim that a “gag order” prevented their concerned victim from telling any other family members. They would then pass the call to another suspect, who posed as an attorney representing the relative in distress.

Victims were persuaded to give the money to another individual who came to their homes — in New York City, Chicago and other locations — posing as a bail bondsman or in some cases send it by mail. Prosecutors say that money was later transmitted to the suspects in Canada, a process that often involved cryptocurrency.

“These transactions obscured the source of the money and the identities of the co-conspirators who collected and controlled the money, and promoted and paid the operating expenses of the Grandparent Scam,” the indictment reads.

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Some victims were allegedly pursued multiple times, with suspects calling back later to say the bail amount had increased and more money was needed. Suspects referred to a victim who provided substantial amounts of money as a “whale,” the indictment says.

Overall, prosecutors say the scheme defrauded hundreds of elderly victims across the U.S. until early June 2024, when Canadian law enforcement executed search warrants at the call centers.

That day, the indictment says, one defendant was found in his truck with “numerous cell phones and lists of elderly individuals in multiple states,” while more than a dozen others were found at multiple call centers “in the act of placing phone calls to elderly victims in Virginia.”

What’s next? 

All but two of the suspects were arrested in Canada on Tuesday, which American authorities say is the result of extensive cooperation between local and federal agencies in both countries.

“Today’s arrests demonstrate IRS-CI’s commitment to protecting the American people from bad actors, no matter where they are hiding,” said Thomas Demeo, acting special agent in charge of the Boston field office of the Internal Revenue Service Criminal Investigation (IRS-CI).

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All 25 suspects are facing a charge of fraud conspiracy, which prosecutors say is punishable by up to 20 years in prison.

The five suspects accused of managing the call centers — Gareth West, Usman Khalid, Andrew Tatto, Stephan Moskwyn and Ricky Ylimaki — are also charged with conspiring to commit money laundering. They face up to 40 years in prison if convicted.

West and Ylimaki remain at large, prosecutors say.

In addition to this group, nine other people were previously charged in Vermont in connection with this same scam, the U.S. Attorney’s Office says. The individuals range in age from 27 to 39, and hail from places as varied as Miami, Los Angeles, Montreal and Guangzhou, China.

Grandparent scams are increasingly common

It’s not unusual for scammers to gain access to people’s personal information — by scouring social media or buying data from cyber thieves — and then “create storylines to prey on the fears of grandparents,” the Federal Communications Commission (FCC) says.

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“Grandparents often have a hard time saying no to their grandchildren, which is something scam artists know all too well,” it adds.

An FBI report released last year found that scams targeting people ages 60 and up caused over $3.4 billion in losses in 2023, a roughly 11% increase from the previous year.

Authorities warn that grandparent scams have grown increasingly sophisticated in recent years, with some perpetrators using AI to clone the voices of victims’ loved ones in a hauntingly realistic touch.

The Federal Trade Commission (FTC) urges people: “Don’t trust the voice.” Anyone who gets this kind of call, especially if they are pressured to send money quickly, should call or text the person who supposedly contacted them to verify their story.

While some entities have tried to beat scammers at their own game — like the British phone company that developed an AI “granny” to waste shady callers’ time — experts have warned against scam-baiting.

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According to the FCC, the best defense against these scams is awareness.

People can monitor resources like the AARP Fraud Watch Network Scam-Tracking Map and alerts from the Better Business Bureau. They are also encouraged to report any suspicious calls on the FTC’s website.

Any fraud victims ages 60 or older can also call the National Elder Fraud Hotline, a free resource from the U.S. Department of Justice.

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Wheelchair curler Steve Emt’s path from drunk driver to three-time Paralympian

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Wheelchair curler Steve Emt’s path from drunk driver to three-time Paralympian

American Steve Emt competes in Sunday’s mixed doubles match against Italy, which the U.S. won.

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Anyone watching the Winter Paralympics has probably taken note of Steve Emt, who — along with Laura Dwyer — is representing Team USA in the Games’ first-ever mixed doubles event.

Their performance is one thing: The pair notched three dramatic, back-to-back wins in the round-robin tournament to reach the semifinals, marking the first time the U.S. has qualified for a medal round in wheelchair curling since the 2010 Paralympics.

After losing to Korea in the semifinals, Emt and Dwyer will face Latvia in the bronze medal match on Tuesday, in the hopes of winning the U.S. its first Paralympic medal in wheelchair curling.

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But it’s their teamwork and attitude on ice that really set them apart. Emt, in particular, has charmed the internet, with his booming baritone delivering a steady stream of encouragement to his doubles partner and demands to the granite stones they’re sliding (“curl!” “sit!”).

“I have three older siblings. I was always on the basketball court getting beat up by them, so I had to assert myself on the court, around the kitchen table, everything,” he said when asked about his deep voice this week.

Steve Emt and Laura Dwyer celebrate during a match this week.

Steve Emt and Laura Dwyer have made sure to celebrate their wins, of which there have been many throughout this wheelchair curling mixed doubles round-robin tournament.

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While Emt, 56, is competing in a new event, he’s no stranger to the sport: The 10-time national champion and three-time Paralympian is the most decorated Paralympic curler in U.S. history.

But he didn’t know what curling was until he got recruited off the street just over a decade ago.

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Emt, who is 6 feet, 5 inches tall, was enjoying a day in Cape Cod, Mass., in 2013 when a stranger with slicked-back hair approached and asked if he was local. Emt replied that he lived in Connecticut and suspiciously asked why.

“He said, ‘Well, I train with the Paralympic rowing team here in the Cape. I saw you pushing up the hill back there. With your build, I could make you an Olympian in a year,’” Emt recalled, referring to his wheelchair. “And I heard ‘Olympics,’ I’m like: Let’s go. What the hell is curling?”

After their conversation, Emt drove home and did some research, confirming that curling was not related to weightlifting, as he originally suspected.

“I went back two weeks later and I threw my first stone, and it just bit me,” he said.

Before long, Emt was making the two-and-a-half-hour drive to Massachusetts to spend the weekend training with that stranger-turned-coach, Tony Colacchio. He made the U.S. wheelchair curling team in 2014 and competed at his first world championship in 2015. Emt made his Paralympic debut in Pyeongchang in 2018, five years after that fateful encounter.

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Emt, speaking to reporters in October, said the sport of curling has changed him as a person, mellowing him out. But the existence of the sport as a competitive outlet for athletes with disabilities changed his life.

Emt had been an all-star high school athlete, an Army West Point cadet and a UConn basketball walk-on before a drunk driving incident paralyzed him from the waist down at 25 years old.

“I’m a jock … I need to compete, and I didn’t have anything going on in my life,” Emt said. “Seventeen years after my crash, I had a hole, and then [Colacchio] came along and stalked me into the sport.”

By that point, Emt had spent years working as a middle school math teacher, a high school basketball coach and a motivational speaker. The latter has been his full-time job for almost a decade, taking him to over 100 schools across the country each year. He tells those teenagers about the chance Colacchio took on him, encouraging them to “be a Tony.”

“Go sit with that kid at lunch that’s sitting alone … smile [at] somebody in a hallway, get your heads out of your phones, get your heads out of the sand,” he continued. “We’re all going through something … and a simple ‘hello’ or ‘good morning,’ it could change their day. It could change somebody’s life.”

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Why Emt now shares his story 

This is the third Paralympics for Emt, who is already eyeing Salt Lake City 20

This is the third Paralympics for Emt, who is already eyeing Salt Lake City 2034.

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Emt wasn’t always so willing to open up. For the first half a year after his 1995 crash, he told everyone a deer had run in front of his car rather than admit he had gotten behind the wheel drunk.

“I was lying to myself, I was lying to everybody around me,” he said. “I didn’t want kids to look at me in my hometown, in the state, and everyone around the country, as a drunk driver. I wanted them to look at me as a stud athlete and a great person.”

Emt had been a “stud athlete”: His talents in high school basketball, soccer and baseball made him a star in his hometown of Hebron, Conn., and earned him a spot on the basketball team at West Point.

But he dropped out two years later, after his father’s sudden death from a heart attack. He went home to Connecticut and eventually enrolled at UConn, where he walked on to its storied basketball team, joining future NBA greats like Donyell Marshall. Emt says, with a chuckle, that he had 38.7 seconds of playing time in his two years.

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Emt was wearing his Big East championship jacket the night of his 1995 accident, which he says left him for dead on the side of the highway. When he woke up from a coma a few days later, he learned he would never walk again.

And he didn’t want to tell people why, until a newspaper reporter approached him six months later wanting to tell his story — and encouraged him to be honest. He said the opportunity to “come clean” helped him accept what he’d done and forgive himself.

“That’s my label: Yeah I’m a curler, yeah I’m a speaker, yeah I’m a drunk driver,” he said. “I’m in a wheelchair because of a drunk driving crash, and I want you to know it and I want you to learn from me.”

Emt first got into motivational speaking about eight months after his accident, and has been doing it ever since. He calls it his therapy.

He says that and curling — which is about shaking hands with competitors instead of smack-talking them — has helped him slow down and appreciate the little things. Relocating to Wisconsin and the chiller pace of Midwest life has also helped. And he says he cherishes the platform that curling has given him.

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“I want people to know: ‘Hey, when you’re ready to talk, I’m here for you.’ This is what I do, from my speaking to my curling, whatever it is, there are so many opportunities to be successful again,” he said. “When you wake up and you’re told you’re never going to walk again, it’s like, what do I do now? … And I just want people to know that there are so many avenues out there, so many things to do.”

Emt, the oldest Paralympian on Team USA, originally aimed to make it to three Games. But he’s now eyeing even more, as he’d like to compete on home turf in Salt Lake City in 2034 (two Games away).

“I’m going to be like 90 years old competing at the Paralympics,” he laughed.

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Map: 2.3-Magnitude Earthquake Reported North of New York City

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Map: 2.3-Magnitude Earthquake Reported North of New York City

Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown.  All times on the map are Eastern. The New York Times

A minor, 2.3-magnitude earthquake struck about 12 miles north of New York City on Tuesday, according to the United States Geological Survey.

The temblor happened at 10:17 a.m. Eastern in Sleepy Hollow, N.Y., data from the agency shows.

The Westchester County emergency services department said in a statement that it had not received any reports of damage.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

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Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Eastern. Shake data is as of Tuesday, March 10 at 10:30 a.m. Eastern. Aftershocks data is as of Tuesday, March 10 at 2:18 p.m. Eastern.

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Ed Martin, outspoken Justice Department lawyer, is formally accused of ethical violations | CNN Politics

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Ed Martin, outspoken Justice Department lawyer, is formally accused of ethical violations | CNN Politics

Ed Martin, an outspoken Trump administration official, is facing attorney discipline proceedings in Washington, DC, for a letter he sent to Georgetown Law about its diversity programs, the district’s professional conduct investigator announced on Tuesday.

Martin is formally accused of violating his ethical codes as an attorney for telling Georgetown Law’s dean last year that his Justice Department office wouldn’t hire students because of the school’s diversity, inclusion and equity initiatives programs, according to the filing from Hamilton Fox, the disciplinary counsel for DC who acts as a quasi-prosecutor on attorney discipline matters.

Unlike unsolicited complaints, Fox’s formal disciplinary complaint kicks off professional conduct proceedings for Martin in which he will need to respond and could be sanctioned or ultimately lose his law license.

Fox’s announcement on Tuesday marks the first major bar discipline proceeding against a high-profile administration official or attorney supporting President Donald Trump during Trump’s second term. Several Trump lawyers faced disciplinary proceedings after the efforts to overturn Joe Biden’s victory in the 2020 presidential election, including Rudy Giuliani, who lost his law license.

“Acting in his official capacity and speaking on behalf of the government, he used coercion to punish or suppress a disfavored viewpoint, the teaching and promotion of ‘DEI,’” Fox wrote in the complaint. “He demanded that Georgetown Law relinquish its free speech and religious rights in order to continue to obtain a benefit, employment opportunities for its students.”

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Martin was removed from the top prosecutor job in DC after senators made clear he would not be confirmed to the role, but has remained at the Justice Department in several roles, including as pardon attorney.

“Mr. Martin knew or should have known that, as a government official, his conduct violated the First and Fifth Amendments to the Constitution of the United States,” Fox wrote.

Martin is being represented by a Justice Department attorney, a source told CNN.

A spokesperson for DOJ attacked Fox’s complaint. “The DC bar’s attempt to target and punish those serving President Trump while refusing to investigate or act against actual ethical violations that were committed by Biden and Obama administration attorneys is a clear indication of this partisan organization’s agenda,” DOJ said.

Martin had sent the letter to Georgetown Law while serving temporarily as US attorney for DC, a prominent Justice Department position, and told the school his federal prosecutors’ office wouldn’t hire Georgetown’s law school students. It came at a time when the Trump administration was beginning to crack down on universities for their DEI efforts.

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In his letter, Martin claimed a whistleblower told him that the school was teaching and promoting DEI.

Martin also violated attorney ethics rules by contacting judges of the DC court directly, Fox alleged, rather than going through official channels, once he was informed he was under investigation for his professional conduct. The DC Court of Appeals ultimately signs off on attorney discipline findings.

Early last year, Fox’s office had formally asked Martin to respond to a complaint it received by a retired judge regarding the Georgetown letter.

Martin instead wrote to the judges on the DC court complaining about Fox.

“In that letter, he stated that he would not be responding to Disciplinary Counsel’s inquiry, complained about Disciplinary Counsel’s ‘uneven behavior,’ and requested a ‘face-to-face meeting with all of you to discuss this matter and find a way forward,’” Fox wrote.

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“He copied the White House Counsel ‘for informational purposes because of the importance of getting this issue addressed,’” Fox said.

The top judge in the DC courts told Martin the court wouldn’t meet with him about the disciplinary matter and that he would need to follow procedure.

With Fox’s complaint, there will now be several steps ahead of bar discipline authorities looking at Martin’s action, and Fox didn’t specify how Martin should be reprimanded or punished if the discipline boards and the court ultimately determine he violated his ethical codes.

Spokespeople for the Justice Department didn’t immediately respond to requests for comment on Tuesday morning.

In recent days, Attorney General Pam Bondi announced her office would have a more powerful role in reviewing attorney discipline complaints against Justice Department attorneys, potentially setting up an approach that could keep the department at odds with the bar on behalf of DOJ attorneys facing their own individual disciplinary proceedings.

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CNN’s Paula Reid contributed to this report.

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