Scam costs Tiverton man nearly $200,000 in gold

Alleged scammer in federal custody as part of larger fraud investigation

By Ted Hayes
Posted 10/3/24

A Connecticut man who allegedly took part in a scam that cost a Tiverton resident nearly $200,000 in gold bullion last month is being held in federal custody as part of a larger investigation into …

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Scam costs Tiverton man nearly $200,000 in gold

Alleged scammer in federal custody as part of larger fraud investigation

Posted

A Connecticut man who allegedly took part in a scam that cost a Tiverton resident nearly $200,000 in gold bullion last month is being held in federal custody as part of a larger investigation into scammers who allegedly targeted several Rhode Island seniors.

Kush J. Patel, 22, of Bridgeport, faces charges of wire fraud, conspiracy to commit wire fraud, money laundering and conspiracy to commit money laundering. He was arrested on Saturday, Sept. 21 and, following an appearance in United States District Court on Monday, Sept. 23, is currently being detained by federal authorities.

According to documents released by the United States Attorney’s Office, Rhode Island District, Tiverton police learned  last month that the victim, a 72-year-old Tiverton man, responded to a pop-up message on his computer claiming that the computer had a virus, that his identity had been compromised, and that drug trafficking, money laundering and child pornography had been associated with his name in computer records.

According to the documents, the victim was told that he would need to have the matter cleared up with an agent of the Federal Trade Commission, and that his assets were being frozen. But the matter could be resolved, the scammers allegedly said, by making payments in gold.

“Over the next several weeks, the fake FTC agent directed the victim to make three purchases of gold bullion from a specific gold dealer in New York via wire transfer, and that the gold was to be delivered to the victim’s home” for pickup later.

Investigators said the man made three separate gold purchases of approximately $96,000, $101,000 and $165,000. He turned the first two orders over to men he believed were FTC agents, who came to his home but never left their cars and instead directed him to hand the gold through a window.

When Tiverton police got involved, officers contacted homeland security agents and other law enforcement officials, who advised the victim to swap out the gold from the last $165,000 order with items of similar weight — in his case, ceramic tiles.

When the victim allegedly met with Patel in the park n’ ride on Fish Road Saturday, Sept. 21, law enforcement officers were watching. Though he was allowed to leave after the handoff, Patel was arrested later that day following a traffic stop conducted by Connecticut State Police.

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