FBI Arrests New York Resident for Fraudulent Scheme
The FBI has arrested a New York State resident named Tushal Rathod, 44, from Baldwinsville, who is accused of orchestrating a fraudulent scheme that netted approximately $1.7 million through the use of counterfeit checks and business email compromise scams. Rathod faces several serious charges, including wire fraud, conspiracy related to wire fraud, money laundering, and conspiracy to engage in money laundering, for activities allegedly conducted between November 2021 and June 2024.
Details of the Scheme
Court documents reveal that Rathod was adept at manipulating the banking system, reportedly utilizing a total of seven different bank accounts across six financial institutions to funnel his illicit earnings. The majority of his ill-gotten gains were converted into Bitcoin, with around $1.2 million reportedly transferred to addresses outside his control.
Business email compromise schemes—often executed through targeted spearphishing attacks—have increasingly become a tool for fraudsters. These attacks typically involve the theft of login information, enabling the culprit to intercept details regarding legitimate company transactions. This allows scammers to pose as real vendors, tricking companies into processing payments into fraudulently established accounts.
Investigation Findings
According to FBI special agent Samuel Morgan, at least three banks alerted Rathod that suspicious funds were flowing into his accounts. In an attempt to legitimize these transactions, Rathod allegedly created fake invoices. One case involved an invoice shown to a victim by M&T Bank, who then confirmed its fraudulent nature. Rathod claimed he was the victim of fraud himself but failed to provide any substantiating documentation after being asked.
Morgan’s affidavit noted that fraudsters frequently open multiple accounts under business names to disguise the origin of stolen funds. Additionally, it’s alleged that Rathod enlisted the help of his girlfriend and certain family members, contributing to the further complexity of the scam. Evidence indicates that over a million dollars was funneled into these accounts, although Citibank successfully reclaimed $800,000 of the fraudulent funds.
Consequences and Future Implications
In February 2023, Rathod reportedly made significant purchases in Bitcoin, including two transactions amounting to a total of approximately $900,000, which he then directed to an undisclosed recipient the same day. Further investigation revealed communications on his devices that raised suspicions among his acquaintances; notably, a former partner, who is the mother of his six-year-old child, brought her concerns about potential money laundering to the FBI’s attention.
If convicted, Rathod faces a maximum penalty of 20 years in prison, highlighting the serious implications of engaging in such high-stakes financial deception.
