Five Arrested in Southern California for Fraud Scheme Tied to Germany

Authorities in Southern California have arrested five individuals at the request of German officials, who have charged them in connection with a sophisticated fraud scheme. The suspects, all alleged international fugitives, are accused of orchestrating a plan that involved generating recurring fraudulent debit or credit card charges from fictitious merchants. The arrests were announced on October 4, 2023, following an operation led by the U.S. Marshals Service.

The suspects are identified as Medhat Mourid from Woodland Hills, Andrew Garroni from Los Angeles, Guy Mizrachi from Agoura Hills, and two individuals from Irvine, Ardeshir Akhavan and Tunde Benak. They made their initial court appearances in federal court in downtown Los Angeles on the same day as their arrest. The U.S. Department of Justice confirmed that the defendants will face extradition to Germany.

According to German authorities, the alleged scheme involved maintaining monthly charges on victims’ credit cards at amounts just below $57. This approach was designed to avoid raising suspicions regarding the nature of the charges. The fraudulent charges were linked to non-existent companies that operated through fake websites accessible only via direct links.

Prosecutors claim that the individuals behind this operation colluded with German payment service processors, including their executives and compliance officers, to facilitate the processing of these fraudulent transactions. On the same day as the arrests, law enforcement also apprehended former employees and executives of German payment processors who are believed to have played a role in the scheme.

The complex nature of this fraud has led German authorities to characterize it as a “shadow financial system” that undermined legitimate commerce. The investigation highlights significant challenges in international financial oversight, particularly concerning the collaboration between fraudulent entities and payment processors.

As this case unfolds, it underscores the growing need for vigilance against sophisticated fraud schemes that exploit technological vulnerabilities and cross-border financial systems. The commitment of U.S. and German authorities to pursue justice in this matter represents a coordinated effort to combat international financial crimes.