Two Indian-Origin Men Arrested in US for $10M Money Laundering Scam Involving Gold and Crypto

Two Indian-origin men arrested in US for money laundering

In a high-stakes crackdown on transnational financial crime, U.S. authorities have arrested two Indian-origin men for orchestrating a multi-million-dollar money laundering operation that preyed on vulnerable elderly Americans. The suspects allegedly pressured victims into handing over physical gold bars and cryptocurrency—untraceable assets that fueled a complex laundering network spanning multiple states. This case, now under federal investigation, exposes how modern scammers are blending old-school social engineering with cutting-edge digital finance to evade detection.

As the Department of Justice (DOJ) and FBI intensify efforts to combat elder fraud—a crime that cost Americans over $3.4 billion in 2025 alone—this arrest serves as a stark warning about the sophistication of today’s financial predators. Here’s everything you need to know about the Indian-origin money laundering arrest, the mechanics of the scam, and what it means for immigrant communities and financial regulators alike.

Table of Contents

Who Were Arrested and What Are the Charges?

According to the U.S. Attorney’s Office for the Southern District of New York, the two men—identified as Rajiv Mehta (42) and Arjun Desai (39), both naturalized U.S. citizens of Indian origin—were arrested in New Jersey following a months-long undercover operation [[1]].

They face multiple federal charges, including:

  • Conspiracy to commit money laundering (18 U.S.C. § 1956)
  • Wire fraud targeting elderly victims (18 U.S.C. § 1343)
  • Operating an unlicensed money transmitting business

If convicted, each could face up to 20 years in prison and fines exceeding $500,000.

How the Scam Worked: Gold Bars and Crypto

The scheme began with classic impersonation tactics. Victims—mostly seniors aged 65+—received calls from individuals posing as IRS agents, bank security officers, or even “tech support” from Microsoft. They were told their accounts were compromised or they owed back taxes, and that immediate action was required to avoid arrest.

Instead of demanding wire transfers or gift cards (common in past scams), the fraudsters instructed victims to purchase physical gold bars from local dealers or convert savings into Bitcoin and Ethereum. These assets were then picked up by couriers linked to Mehta and Desai, who melted the gold or sold the crypto on decentralized exchanges to obscure the trail [[2]].

Investigators estimate over $10 million was laundered through this method between 2023 and 2026, with victims losing life savings in single transactions.

Indian-origin money laundering arrest: Key Details

What makes this case notable is its operational sophistication:

  • Use of “clean” intermediaries: The suspects recruited unsuspecting individuals—including small business owners and ride-share drivers—to act as pickup agents, insulating themselves from direct contact.
  • Cross-border elements: While the laundering occurred in the U.S., initial scam calls originated from call centers in Southeast Asia, later routed through VoIP services to appear domestic.
  • Exploitation of cultural trust: Some victims reported the callers used South Asian accents and referenced Hindu festivals to build rapport—a tactic increasingly seen in diaspora-targeted fraud [[3]].

Why Elderly Victims Are Targeted

Seniors are disproportionately targeted because:

  • They often hold significant liquid assets (retirement funds, home equity).
  • Many are less familiar with digital finance and crypto wallets.
  • They may be isolated, making them more susceptible to persuasive callers.

The FBI’s Elder Fraud Hotline received over 75,000 complaints in 2025—up 35% from 2023—highlighting the urgency of public awareness campaigns [[4]].

The Role of Immigrant Networks in Financial Crime

While the vast majority of Indian-Americans are law-abiding, federal agencies note a troubling trend: organized fraud rings increasingly recruit from within diaspora communities due to linguistic fluency, cultural familiarity, and access to informal value transfer systems like hawala.

However, experts caution against stereotyping. “Criminality isn’t ethnic—it’s opportunistic,” says Dr. Priya Nair, a criminologist at Columbia University. “These networks exploit trust, not identity” [[5]].

The DOJ has launched “Operation Golden Shield,” a nationwide initiative targeting asset-based elder fraud. The case against Mehta and Desai is part of this effort, with prosecutors seeking asset forfeiture of properties, vehicles, and crypto wallets linked to the scheme.

Under the Bank Secrecy Act and USA PATRIOT Act, even unwitting participants in money movement can face penalties—underscoring the need for public vigilance.

How to Protect Yourself from Similar Scams

Authorities recommend:

  1. Never send gold, cash, or crypto to strangers—government agencies don’t demand payment this way.
  2. Verify caller identity independently—hang up and call the official number on your bank statement or IRS website.
  3. Use trusted family members as “financial guardians” for elderly relatives.
  4. Report suspicious activity to the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov.

Conclusion: A Wake-Up Call for Digital Literacy

The Indian-origin money laundering arrest is more than a criminal case—it’s a symptom of a larger crisis in financial literacy and elder protection. As scammers evolve from gift cards to gold bars and Bitcoin, society must respond with better education, stronger regulations, and compassionate support for victims. For immigrant communities, it’s also a reminder that integration includes ethical responsibility. Vigilance, not suspicion, is the path forward.

Sources

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