DOJ: Foreign National Among Defendants Charged in Seven-Count Housing and Social Security Fraud Scheme

• Losses from the scheme are currently estimated to be in the hundreds of thousands of dollars, with the investigation ongoing.
• The defendants allegedly used BitCoin and Cash App accounts with stolen identities to transfer money and open accounts in victims' names.

A Superseding Indictment was unsealed in U.S. District Court charging Maliktra Derenorcourt and Philippe Oliver Gadie with orchestrating a multi-year fraud scheme involving fake or stolen identities to obtain leases at various apartment complexes without paying rent or bills. The scheme allegedly involved using fabricated Social Security Numbers, Credit Privacy Numbers, and fake employment letters to secure leases, resulting in eviction proceedings and significant financial losses for the apartment complexes.

The conspirators also allegedly used BitCoin and Cash App accounts with stolen and fabricated identities to transfer money, with Gadie opening at least one Cash App account in a victim's name and conducting hundreds of transactions. Gadie, a foreign national unlawfully present in the U.S., was apprehended while living on a fraudulent lease, and the investigation into the full extent of the losses and the use of these accounts is ongoing.

• Review lease applications for use of fabricated Social Security Numbers and Credit Privacy Numbers as described in the DOJ Superseding Indictment.
• Monitor for suspicious activity involving BitCoin and Cash App accounts opened with stolen or fabricated identities linked to the scheme.
• Screen for individuals using fraudulent employment letters and batch applications to exploit lengthy eviction processes, as outlined in case 26cr142.

This case highlights the risks posed by organized fraud rings exploiting weaknesses in identity verification and the eviction process to perpetrate large-scale housing and Social Security fraud. The use of digital payment platforms like BitCoin and Cash App with stolen identities demonstrates the evolving tactics of fraudsters and the need for robust controls and monitoring. Compliance officers must be vigilant in detecting fabricated documents, monitoring for suspicious financial activity, and collaborating with law enforcement to mitigate financial and reputational risks to their organizations.