7 Long Island men charged in $20M fraud scheme involving gift cards, elderly victims

NEW YORK - Authorities in Nassau County have charged seven men in connection to a $20 million money laundering and conspiracy scheme that spanned across 45 states, defrauding over 1,800 victims, many of them elderly. 

Prosecutors say the suspects fraudulently obtained Home Depot and Lowe’s gift cards, which they used to purchase copper pipes, steel cables, and hot water heaters before reselling them for profit.

What we know:

Investigators say the defendants used a computer-based scam to steal money from victims, some of whom were led to believe that their personal information had been used to purchase child sexual abuse material. The victims were instructed to call a specific phone number, where they were then coerced into buying gift cards under false pretenses.

The suspects redeemed these gift cards for construction supplies, which were resold to local plumbing and home improvement businesses. 

The fraud ring is allegedly responsible for more than 6,000 transactions at over 80 Home Depot and Lowe’s locations in New York State alone.

Police say they found stolen construction supplies, large amounts of cash, and luxury items inside the suspects’ vehicles.

By the numbers:

• 1,800+ victims across 45 states
• 6,000+ fraudulent transactions
• $20 million in total losses
• $50,000 worth of pipes purchased in a single day using 50+ gift cards
• $100,000 in cash recovered, along with high-end jewelry and handbags

What's next:

All seven men pleaded not guilty and face a maximum of 15 years in prison if convicted. Six of the defendants were released on cashless bail, sparking concern from law enforcement officials.

"We have thousands of victims out there," said Nassau County Police Commissioner Patrick Ryder. "If we’re going to be able to prosecute them, we have to keep them where they belong—and that’s in jail."

What you can do:

Officials are warning the public to remain vigilant against phone scams.

"If someone calls you and identifies themselves as a government employee, a bank representative or representative of an Internet or software company and asks you for money, I'm telling you, hang up the phone," said Nassau County District Attorney Anne Donnelly.