New York Man Faces Charges for Alleged $1.7 Million Fraud Scheme

According to PANews, the FBI has accused Tushal Rathod, a New York resident, of profiting $1.7 million through forged checks and business email compromise scams, converting most of the illicit gains into Bitcoin. The alleged criminal activities occurred between November 2021 and June 2024. FBI agent Samuel Morgan reported that Rathod received funds through seven accounts at six financial institutions and sent $1.2 million worth of Bitcoin to external addresses. Despite warnings from at least three banks about the illegal nature of his funds, Rathod allegedly disguised the transactions with fake invoices. After police intervention, he refused to cooperate with the investigation. Court documents reveal that Rathod recruited his girlfriend and family members to assist in the fraud, with over $1 million in fraudulent funds deposited into their accounts. Citibank managed to recover $800,000. In February 2023, Rathod purchased $900,000 worth of Bitcoin and transferred it. If convicted, Rathod faces up to 20 years in prison.