A fraudster persuaded an elderly woman from Michigan to exchange her entire life savings for gold coins. However, instead of receiving $700,000 worth of gold coins, he ended up with a package of chocolate coins.
The event transpired when a scammer informed a 79-year-old woman from Michigan that her Social Security number was linked to terrorism, drug-related activities, and money laundering. The scammer instructed her to withdraw her life savings of $700,000 and convert the cash into gold coins so that law enforcement could trace the criminals.
The woman reached out to Grand Rapids Coins located on 10 Mile Road near Rockford and transferred $700,000 for 145 one-ounce American Eagle gold coins. However, the owner, Ben Soldaat, grew suspicious and contacted the Kent County Sheriff’s Office, according to WANE News.
Soldaat informed the authorities that the woman appeared confused and had no prior experience in purchasing gold.
Deputies arrived at the woman’s residence, where she maintained ongoing communication with the scammer via phone. After conversing with an investigator who was impersonating the elderly woman, the scammer consented to meet near the coin shop.
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Who is Yug B. Chauhan and what charges is he facing?
An undercover officer, disguised as an older woman, awaited his arrival with a bag of chocolate coins. The officer subsequently handed the package to 20-year-old Yug B. Chauhan from India.
Chauhan was apprehended at the scene after allegedly traveling from Illinois to West Michigan to retrieve the gold coins. He faces charges of false pretenses exceeding $100,000 and using a computer to facilitate a crime, both of which are felonies.
He is currently detained at the Kent County jail with a bond set at $100,000 and an ICE detainer in place.
Michigan woman gets refund
The woman received a refund of $700,000 to her bank account. The FBI and the FTC have issued warnings that scammers specifically target elderly individuals, persuading them to convert their assets into cash and subsequently exchange that money for untraceable precious metals.
According to government agencies, these criminals then organize for couriers to meet the victims in person to collect the cash or precious metals. The FBI has stated that government officials never instruct individuals to purchase gold bars or coins.
Criminals acquire the personal information of victims from the dark web, where hackers sell data that has been stolen from government or retail databases.