Former Social Security Employee Pleads Guilty in International 'Grandparent Scam'

Ex-Claims Specialist Admits Role in Defrauding Seniors Across New York and New Jersey

In a startling revelation of fraud and betrayal, a former claims specialist with the U.S. Social Security Administration has admitted to participating in a transnational "grandparent scam" that preyed upon elderly Americans. Victor Anthony Valdez, 39, of the Bronx, New York, pleaded guilty to wire fraud conspiracy before U.S. District Judge Claire C. Cecchi in Newark federal court.

Valdez was part of a sophisticated scheme operating from call centers in the Dominican Republic between August 2020 and August 2021. The scam involved making phone calls to elderly victims across the United States, during which conspirators impersonated the victims' grandchildren, attorneys, court officials, or other legal representatives. They concocted elaborate stories claiming that the victims' grandchildren had been arrested and urgently needed cash for bail or legal expenses.

Once the victims were ensnared by these fabricated tales, they were instructed to hand over large sums of money to couriers. Valdez acted as one such courier, personally visiting the homes of victims in New York and New Jersey to collect tens of thousands of dollars in cash. The deceit was meticulous, exploiting the natural concern and love that grandparents have for their grandchildren.

Valdez faces a maximum sentence of 20 years in prison and a fine of up to $250,000. Sentencing is scheduled for April 9, 2025.

“The defendant admitted to his role in a scam targeting vulnerable seniors. The defendant and his coconspirators took advantage of grandparents’ love and concern for their grandchildren they believed to be in trouble, convincing them to pay thousands of dollars. My office will continue to protect the rights of all victims, and we will relentlessly prosecute those who target and cheat vulnerable seniors,” said U.S. Attorney Philip R. Sellinger.

The involvement of a former Social Security Administration employee in such a scheme adds a disturbing layer to the crime. As a claims specialist, Valdez was entrusted with the welfare of beneficiaries, many of whom are elderly and rely on Social Security for their livelihood. His participation in defrauding the very demographic he was meant to serve underscores the insidious nature of the scam.

The Anatomy of the Scam

The "grandparent scam" is a well-known fraud tactic targeting seniors. In this case, the operation was transnational, with roots in the Dominican Republic. Callers would reach out to elderly individuals, pretending to be a distressed grandchild in legal trouble or an official associated with legal proceedings. The urgency conveyed in these calls pressured victims to act quickly, often without verifying the information.

Victims were told that their grandchild had been involved in an accident, arrested for a serious offense, or faced other legal jeopardy requiring immediate financial assistance. They were instructed not to contact other family members, ostensibly to avoid further complications or embarrassment. Couriers like Valdez would then be dispatched to collect the cash directly from the victims' homes, adding a personal touch that made the scam even more convincing.

“Mr. Valdez intentionally conspired to defraud the elderly of their money and property through a cruel, international grandparent scam,” said Hannibal “Mike” Ware, Acting Inspector General for the Social Security Administration. “The vast majority of the victims are Social Security beneficiaries, who live on a fixed income. We will continue to aggressively pursue such intolerable criminal activities. I thank the U.S. Attorney’s Office for their work in prosecuting this case.” 

Law Enforcement Response

The successful prosecution of Valdez is the result of a coordinated effort among multiple law enforcement agencies. U.S. Attorney Philip R. Sellinger credited the special agents of the Social Security Administration’s Office of the Inspector General, under the direction of Special Agent in Charge Amy Connelly, and the Department of Homeland Security’s Homeland Security Investigations (HSI) New York, under the direction of Special Agent in Charge William S. Walker.

Assistant U.S. Attorneys Carolyn Silane and Alison Thompson, along with Trial Attorney Joshua Ferrentino of the Civil Division's Consumer Protection Branch, are leading the prosecution.

“The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue individuals who prey on vulnerable and elderly victims through fraudulent schemes like the one in which the defendant here participated,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Those who aid transnational criminals in deliberately targeting vulnerable consumers in the United States will be held accountable.”

Protecting the Elderly

The case highlights the vulnerability of seniors to financial fraud and the importance of vigilance and education in preventing such crimes. The Department of Justice and other agencies offer resources to assist victims and prevent future incidents.

For individuals aged 60 or older who have experienced financial fraud, the National Elder Fraud Hotline provides support and guidance. Experienced professionals are available at 1-833-FRAUD-11 (1-833-372-8311) to assess victims' needs, identify next steps, and connect them with appropriate agencies. The hotline operates Monday through Friday from 10:00 a.m. to 6:00 p.m. ET, with services available in English, Spanish, and other languages.

Reporting fraud is a crucial step in combating these schemes. Prompt reporting increases the likelihood of recovering losses and aids authorities in identifying and prosecuting perpetrators.

The Department of Justice’s Elder Justice Initiative focuses on preventing and combating elder abuse and financial exploitation. More information can be found on their webpage. Additionally, the Consumer Protection Branch actively enforces laws to protect consumers from fraud and abuse.

Elder fraud complaints can be filed with the Federal Trade Commission (FTC) at www.reportfraud.ftc.gov/ or by calling 877-FTC-HELP. The Justice Department also provides various resources for elder fraud victimization through the Office for Victims of Crime (OVC), accessible at www.ovc.gov.

The exploitation of seniors through the "grandparent scam" has far-reaching effects, not only draining victims of their life savings but also eroding trust within communities. The case against Valdez serves as a stark reminder of the tactics used by fraudsters and the need for increased awareness.

Family members are encouraged to have open conversations with their elderly relatives about potential scams. Establishing code words or verification methods can help prevent falling victim to such deceitful practices.

Sentencing

As Valdez awaits sentencing, law enforcement agencies continue to investigate and dismantle similar operations. The international nature of these scams presents challenges, but collaboration between domestic and foreign agencies strengthens the ability to track and prosecute offenders.

The public is urged to remain cautious and report any suspicious activities. Education and proactive measures are the best defenses against fraudsters who seek to exploit the most vulnerable members of society.

The admission of guilt by Victor Valdez marks a significant step in the fight against elder fraud. It underscores the commitment of law enforcement to protect seniors and hold accountable those who betray positions of trust. As the sentencing date approaches, the case serves as both a cautionary tale and a call to action for increased vigilance and support for elderly citizens.

If you or someone you know has been targeted by a scam, don't hesitate to reach out to the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311) or visit the resources provided by the Department of Justice and the FTC. Together, we can help protect our seniors from financial exploitation.