New Berlin couple who lost $526K in gold help police catch scam courier
By James Stratton
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NEW BERLIN, Wis. (WISN) — A New Berlin couple who lost over $500,000 in gold to a scam helped police catch a courier involved in a nationwide scheme that has defrauded victims of their life savings.
The couple realized they were being scammed after watching a 12 News investigation last July. A pop-up ad on their computer and several phone calls convinced them that their bank accounts had been hacked and that converting their cash into gold would protect their assets. Over five weeks, they handed over $526,095.40 in gold coins, according to court records.
“They said they needed to protect our assets from these hackers,” the couple told New Berlin police officers when they filed the report.
“No, they need to protect your assets to fund their pockets,” the officer responded.
The scammers demanded another $200,000 in gold. That’s when the couple saw the 12 News Investigates story and contacted police, who set up a sting operation.
The arrest Roshan Shah, a courier from India who had been in the U.S. for a few weeks from Canada, was arrested during the operation. Shah had already picked up gold from 15 victims across eight states, according to federal prosecutors.
To bait Shah for the sting, New Berlin police filled a box with rocks instead of gold.
“Right now there’s $526,000 missing from this elderly couple that don’t have anything left because they gave it all to you guys,” police said during his Mirandized interview shortly after the arrest.
Shah claimed he didn’t know how the scam worked or who he was talking to, but police didn’t believe him.
“I get that you’re part of an elaborate scheme that we obviously knew about. But you’re the low man on the totem pole,” an officer said to him.
Shah pleaded guilty to a federal charge and was sentenced to four years in prison. He will eventually be deported to India.
The scheme Federal prosecutors say Shah is one of seven people facing charges in Milwaukee for their roles in gold bar or gold coin scams. The scheme typically begins with a pop-up ad on a victim’s computer, followed by convincing phone calls claiming their accounts were hacked and used in a crime. Victims are then instructed to convert their money into gold, which is picked up by a courier.
“These cases are so devastating because very few of them involve the main operators of it being in the U.S.,” said First Assistant U.S. Attorney Brad Schimel, who spoke exclusively to 12 News Investigates. “Once the money’s gone, it’s typically gone. We can’t recover it.”
Schimel emphasized that government agencies will never contact individuals and ask them to send money, convert assets, or hand over valuables to a courier.
Investigating the scam Prosecutors investigate the scam in two ways. First, they work to trace the scams to call centers overseas. Then they work to determine what happens to the gold after it is collected.
“Eventually the funds end up back overseas to the folks that are running the scheme. Sometimes we have gold being sold, and in some cases melted down,” said Assistant United States Attorney Peter Smyczek, who leads fraud investigations for the U.S. Attorney’s Office in Milwaukee.
Smyczek and Assistant U.S. Attorney Zachary Corey led Shah’s prosecution.
“Usually there will be one to two handlers that are essentially overseeing or supervising a handful of different couriers that are driving all over the country,” Smyczek said.
The scam is sweeping the country. 12 News Investigates has been speaking to victims and police for more than 18 months. More than 60 victims have lost more than $21 million in the scam, which typically instructs victims to purchase gold bars.
The FBI reports that Americans lost more than $311.8 million to similar scams last year. The agency uses tips to identify patterns and dismantle scam networks.
“We are looking for commonalities in scams so that we can attack the scam centers,” said Alan Karr, FBI Milwaukee special agent in charge.
Reporting the scam Government officials warn they will never request that you buy gold or other precious metals. If you believe you have been scammed, the FBI wants you to report it.
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