Grandparent Scam Ring Sentenced Under RICO Law

A phone call that sounds like a grandchild in trouble can empty a savings account in a day. This case shows how organized the callers can be.

By Siddharth ShankarUpdated October 11, 2026

The grandparent scam is one of the oldest phone frauds, and it keeps working because it attacks love rather than technology. A Justice Department case from August 2022 describes how a network turned that call into a business, with callers, cash couriers and money launderers each doing a separate job.

What happened

The Justice Department said two men, aged 30 and 46, were sentenced after pleading guilty in spring 2022 to RICO conspiracy, a charge normally used for organized criminal enterprises. One received 108 months in prison and the other 24 months. FBI San Diego investigated.

The network phoned older Americans and impersonated a grandchild, another close relative or a friend. They claimed the relative was in legal trouble and needed money for bail, for medical expenses of people hurt in a car accident, or to prevent further charges.

How the calls worked

Each call followed the same structure. A frightened voice, a request for secrecy and a deadline. The caller claimed an emergency and pushed the victim to act before talking to anyone else. According to the release, victims paid up to tens of thousands of dollars each.

Payment did not need to be a transfer. The network collected money by in-person pickup, by mail and by wire. One defendant picked up cash and directed money mules. The other received wired funds. The proceeds were then laundered, including through cryptocurrency. Splitting the work this way meant that no single person handled the whole fraud, and it made the callers harder to trace.

What was exposed

The release does not say how the callers found their targets or knew family details, and we will not guess. What the case does show is that a caller needs very little. A name, an age bracket and a plausible relationship are enough to start. A panicked grandparent often supplies the rest by saying the grandchild's name first.

How it ended

For the victims, the outcome is the unhappy part. The release states sentences, not recoveries, and it gives no total loss or restitution figure. Fraud against older people is hard to reverse, because wired funds and cash handed to a courier are rarely returned. The sentences show that these networks can be prosecuted, but the money is usually the hardest thing to recover.

What you can do

Key facts at a glance

• Charge: RICO conspiracy, to which both men pleaded guilty in spring 2022
• Sentences: 108 months and 24 months
• Targets: older Americans
• Cover story: a grandchild, relative or friend in legal trouble, needing bail or medical money
• Payments: in-person pickup, mail and wire transfer, then laundering including through cryptocurrency
• Lead agency: FBI San Diego

Why the script works

The call is built to remove thinking time. The voice is distressed, the situation is serious and there is a reason to act now. Callers also add a request for secrecy, such as "please do not tell Mom," which isolates the victim from the people who would check the story. Many victims later say the call felt different from a typical scam, because the person seemed to be someone they loved. That is exactly why a pre-agreed family word is so effective. It gives the real relative a way to prove who they are without relying on a voice.

What the release does not say

The release does not give the number of victims, the total losses or any restitution order, and it is silent on how the network found family details. We have not filled those gaps. If you want to see how this type of fraud compares in Canada, read our report on grandparent scam call centres in Canada.

If this case made you want to check your own position, start with these guides on how scammers find your phone number and email, what an exposed phone number means and what strangers can find about you online. You can also try our free phone number exposure check.