Louisville woman targeted in 'grandparent scam' that uncovered $3 million fraud network

LOUISVILLE, Ky. (WDRB) -- A phone call meant to trigger panic led to the arrest of a scammer in Louisville and helped uncover a massive international fraud operation that stole millions of dollars from senior citizens across the country.

The scheme began to unravel when a Louisville woman (who isn't being identified) received a phone call from someone claiming to be her grandson, "Michael," saying he'd been arrested after a car crash and needed thousands of dollars for bail.

"He sounded so much like Michael," the woman said. "He said 'I can't call my dad and I can't call (his wife) Krista.' He knew a lot about us."

The impersonator passed the phone to a man posing as a lawyer, who told the woman someone would come to her home to collect the money. Within minutes, a man dressed in black appeared at her door, and she handed over $9,000 in cash.

A short time later, the fake lawyer called back asking for an additional $15,000. That's when the woman contacted her daughter, who is an attorney.

"I immediately knew it was a scam," the daughter said.

The family asked not to be identified publicly, but the Jefferson County Sheriff's Office/IRS CI Financial Crimes Task Force said the case quickly developed after detectives used video from a Ring doorbell camera to identify the suspect's vehicle. Within 36 hours, the man was located at a nearby hotel and taken into custody.

"We were able to identify the vehicle, the suspect, the hotel room and execute a search warrant," Detective Jamie Brooks said Tuesday.

According to Brooks, the suspect was part of a much larger fraud network.

"These scammers often fly in from other cities," Brooks said. "The people running the operation are outside the country — places like Canada, Colombia and Panama."

The Louisville case was the first major lead in what would become a nationwide investigation, ultimately resulting in six federal convictions and exposing a call center network that stole more than $3 million from elderly victims across the U.S.

"There was evidence — notes, cash — that helped investigators trace the scam," the Louisville victim's daughter said.

Although the scam occurred several years ago, the family said they still receive suspicious phone calls from time to time. But now, the woman knows better.

"I'm smart enough now to hang up," she said.

The victim said Tuesday she's recovered a little more than half of the money she lost in the scam.

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