In a shocking confession of deception and betrayal, a former claims specialist with the Social Security Administration has acknowledged participating in a multinational “grandparent scam” that preyed on elderly Americans. Victor Anthony Valdez, 39, of the Bronx, New York, pled guilty to wire fraud conspiracy before U.S. District Judge Claire C. Cecchi in Newark federal court.
Valdez was part of a sophisticated scam that operated from contact centers in the Dominican Republic between August 2020 and August 2021. The hoax comprised making phone calls to elderly victims across the United States, impersonating their grandchildren, attorneys, court officials, or other legal authorities. They concocted intricate narratives, claiming that the detained grandchildren of the victims required immediate financial assistance for bail or legal fees.
These bogus stories tricked the victims into handing over enormous sums of money to couriers. Valdez served as one such courier, physically visiting the homes of victims in New York and New Jersey to collect tens of thousands of dollars in cash. The elaborate deception took advantage of grandparents’ inherent concern and love for their grandchildren.
Valdez faces up to 20 years in jail and a $250,000 fine. The court has scheduled Valdez’s sentence for April 9, 2025.
“The defendant admitted to his role in a scam targeting vulnerable seniors. The defendant and his coconspirators took advantage of grandparents’ love and concern for their grandchildren they believed to be in trouble, convincing them to pay thousands of dollars. My office will continue to protect the rights of all victims, and we will relentlessly prosecute those who target and cheat vulnerable seniors,” said U.S. Attorney Philip R. Sellinger.
The involvement of a former Social Security Administration employee in such a plot adds another terrible dimension to the crime. As a claims specialist, Valdez was responsible for the well-being of claimants, many of whom are elderly and rely on Social Security for income. His complicity in scamming the exact demographic he was supposed to assist highlights the scam’s insidious character.
The Anatomy of the Scam
This Article Includes
The “grandparent scam” is a well-known fraud tactic targeting seniors. In this case, the operation was transnational, with its origins in the Dominican Republic. Callers would approach elderly people, posing as a concerned grandchild with legal problems or an official involved in legal processes. The urgency implied in these calls compelled victims to respond swiftly, frequently without checking the information.
The victims received information about their grandchild’s involvement in an accident, arrest for a serious violation, or other legal issues requiring immediate financial assistance. They were told not to contact other family members, purportedly to avoid more issues or shame. They would then deploy couriers like Valdez to collect the cash directly from the victims’ homes, adding a personal touch that enhanced the scam’s credibility.
“Mr. Valdez intentionally conspired to defraud the elderly of their money and property through a cruel, international grandparent scam,” said Hannibal “Mike” Ware, Acting Inspector General for the Social Security Administration. “The vast majority of the victims are Social Security beneficiaries, who live on a fixed income. We will continue to aggressively pursue such intolerable criminal activities. I thank the U.S. Attorney’s Office for their work in prosecuting this case.”
Law Enforcement Response
The successful prosecution of Valdez was the product of a collaborative effort by several law enforcement authorities. U.S. Attorney Philip R. Sellinger credited special agents from the Social Security Administration’s Office of the Inspector General, led by Special Agent in Charge Amy Connelly, and the Department of Homeland Security’s Homeland Security Investigations (HSI) New York, led by Special Agent in Charge William S. Walker.
Assistant United States Attorneys Carolyn Silane and Alison Thompson, along with Trial Attorney Joshua Ferrentino from the Civil Division’s Consumer Protection Branch, lead the prosecution.
“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue individuals who prey on vulnerable and elderly victims through fraudulent schemes like the one in which the defendant here participated,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Those who aid transnational criminals in deliberately targeting vulnerable consumers in the United States will be held accountable.”
The example emphasizes seniors’ vulnerability to financial fraud and the significance of vigilance and education in preventing such crimes. The Department of Justice and other organizations provide support to victims and help prevent future incidents.
The National Elder Fraud Hotline offers help and advice to people over the age of 60 who have been victims of financial fraud. Experienced professionals are available at 1-833-FRAUD-11 (1-833-372-8311) to assess victims’ needs, determine next measures, and connect them with suitable agencies. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET, with services offered in English, Spanish, and other languages.
Reporting fraud is a critical step toward combating these frauds. Prompt reporting raises the chances of recovering losses and helps authorities identify and prosecute criminals.
The Elder Justice Initiative of the Department of Justice aims to prevent and combat elder abuse and financial exploitation. You can find more information on the website. Furthermore, the Consumer Protection Branch zealously enforces laws that protect customers from fraud and abuse.
You can file complaints about elder fraud with the Federal Trade Commission (FTC) at www.reportfraud.ftc.gov/ or by calling 1-877-FTC-HELP. Through the Office for Victims of Crime (OVC) at www.ovc.gov, the Justice Department also provides a variety of assistance for elder fraud victims.
The exploitation of elders through the “grandparent scam” has far-reaching consequences, robbing victims of their life savings while also weakening community confidence. The case against Valdez serves as a sharp reminder of fraudsters’ techniques and the importance of increasing awareness.
We encourage family members to openly discuss potential scams with their older relatives. Establishing code words or verification techniques will assist you in avoiding falling prey to such fraudulent operations.
Sentencing
As Valdez awaits sentencing, law enforcement authorities continue to investigate and dismantle similar schemes. The worldwide character of these scams creates obstacles, but collaboration between local and foreign agencies improves the ability to track down and prosecute criminals.
We urge the public to be cautious and report any suspicious activity. Education and preventative actions are the most effective protection against fraudsters who target the most vulnerable segments of society.
Victor Valdez’s admission of guilt represents a big step forward in the fight against elder fraud. It emphasizes law enforcement’s commitment to protecting elders and holding those who abuse their positions of trust accountable. As the sentencing date approaches, the case serves as both a cautionary tale and a rallying cry for greater monitoring and support for the elderly.