DOJ: Columbus man pleads guilty to conspiring to launder $1M in business email scam proceeds

• The scam involved fraudulent ACH transfers related to a PPE contract for a New Jersey health-care provider.
• The defendant used a business account to receive and quickly withdraw approximately $1.1 million in illicit funds.

Benjamin O. Alexander, 43, admitted in federal court to conspiring to commit money laundering by receiving and laundering over $1 million in proceeds from a business email compromise scam. The fraudulent scheme targeted a New Jersey health-care provider during the COVID-19 pandemic, redirecting payments for PPE to an account controlled by Alexander.

The funds, totaling approximately $1.1 million from four ACH transfers, were quickly withdrawn through various means to disguise their origin. Alexander was indicted by a federal grand jury in July 2025 and faces up to 20 years in prison for the federal crime.

• $1.1 million Total fraudulent ACH transfers
• 20 years Maximum prison sentence

• Review ACH transfer controls for payments to new or changed supplier accounts, referencing the BOA Building Maintenance and Cleaning Services LLC case.
• Monitor for rapid withdrawals and layering activities following large incoming transfers, as seen in the Alexander laundering typology.
• Update internal fraud typology libraries to include business email compromise schemes targeting health-care providers during COVID-19.

This case highlights the ongoing risks of business email compromise schemes, especially those exploiting urgent needs during crises like COVID-19. Compliance officers must be vigilant for red flags such as sudden changes in payment instructions and rapid fund withdrawals. The use of legitimate-appearing business accounts to launder proceeds underscores the importance of robust due diligence and transaction monitoring to detect and prevent similar money laundering activities.