Two Maryland Men Convicted of Running a $13M Business Email Compromise Scheme

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According to the Department of Justice, two Maryland men have been convicted of money laundering after running a $13M Business Email Compromise (BEC) scheme. The two men participated in a scheme to launder proceeds by gaining access to the victim businesses’ computer systems including their email servers and email accounts, through phishing attacks or the use of malware.

The conspirators gained access to the victims’ accounts by posing as their business partners and impersonating the victim’s business associates. The duo would then claim the business partner’s bank account information had changed so the victim businesses would send money to accounts controlled by the conspirators. The two men and their co-conspirators managed to launder over $13M from the victim businesses through various bank transactions using dozens of accounts that they, directly or indirectly, controlled.

As part of the scheme, one of the conspirators would withdraw the proceeds of the fraud in cash, which he delivered to other conspirators. The other conspirator’s role in the scheme was to manage the money laundering by causing conspirators to open bank accounts which he used to wire money domestically and internationally. The duo faces a maximum penalty of 20 years in prison when sentenced on November 4, 2022.

To read the full article click here.

Prevent This From Happening To YOU!

Do your clients say, “I’ve got the awareness of Corporate Deception? Social Engineering? Fraudulent Impersonation? Business Email Compromise?” Or “I’ve got the proper verification policies and procedures in place?” Or “I’m okay with a $100k sub-limit coverage?” If so, great, but do they have a high enough limit of insurance to protect them from the big one?

Berkley Crime offers Corporate Deception Fraud insurance products with limits up to $10MM. Call one of your experts below, or drop them an email to find out how you can obtain higher limits of social engineering fraud for your clients.

Please Note: This material is provided to you for general information purposes only. Establishment, adoption, and enforcement of any policy, procedures, or audits arising from such practices is the responsibility of each financial institution. We make no representation or warranty, express or implied, that our activities or advice will place you in compliance with the law; that your premises or operations are safe; or that the information provided is complete, free from errors or timely. We are not liable for any direct, indirect, special, incidental or consequential damages resulting from the use or misuse of this information. You are not entitled to rely upon this information or any loss control activities provided by us, and you may not delegate any of your legal responsibilities to us.

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Michael Beranek
Berkley Crime

National Practice Leader
Michael Beranek 
(646) 522-7362
[email protected]
East Regional Manager/Commercial Crime Product Leader
Matt McNamara 
(212) 497-3707
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West Regional Manager
Brian Platt
(720) 979-1155
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Financial Institution Product Leader
Patricia Logan
(212) 497-3708
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Renewal Team Leader
Cheryl Yorio
(860) 466-7379
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