Two Indian nationals, Gajera Prashant and Dharaben Bavadiya, have pleaded guilty for their roles in an alleged elderly fraud scheme in Gentry, Arkansas. Court records show Prashant pleaded guilty on June 29, while Bavadiya entered her guilty plea on August 17. Both received five-year prison sentences, suspended, according to local authorities.
Prashant and Bavadiya were running a PayPal refund scam, a common fraud in which scammers convince victims that they mistakenly received money and must immediately return it. Investigators said that the scheme primarily targeted elderly people through intimidation and deception.
Gentry Police Detective Ryan Loftus told 5NEWS, “They eventually convince you that you're going to get fired if they don't get that money back. But in reality, the money was never there.”
Authorities believe that Prashant and Bavadiya acted as alleged couriers or “middlemen”for a larger fraud operation. Homeland Security Investigations (HSI) continues to investigate the broader network.
Also read: $100,000 OPT fee plan reaches White House review: What it could mean
Undercover operation exposed the alleged fraud
The arrests followed a coordinated sting conducted by the Gentry Police Department, Homeland Security Investigations, and Trilogy Media, a YouTube-based scam-baiting group known for helping law enforcement expose online fraud.
{{/usCountry}}The arrests followed a coordinated sting conducted by the Gentry Police Department, Homeland Security Investigations, and Trilogy Media, a YouTube-based scam-baiting group known for helping law enforcement expose online fraud.
{{/usCountry}}According to investigators, Trilogy Media posed as a potential victim and persuaded the suspects to travel from India to collect $29,500 in cash.
Instead, Gentry Police Officer David Williamson went undercover as an elderly victim carrying fake currency.
Williamson disguised himself with grey hair and slowly approached the suspect during the planned exchange. Before receiving the package, the suspect reportedly had to provide the code word “Angel” and hand over a $1 bill with a pre-arranged serial number. Once officers verified the serial number, the fake money changed hands.
Police said the suspects repeatedly changed the meeting point between Harp’s Food Store and Jim’s Razorback Pizza before the exchange finally occurred. The Highfill Police Department’s Drone Team monitored the suspects’ movements throughout the operation. After the fake cash was collected, officers arrested both suspects. Multiple cameras recorded the exchange, according to the arrest affidavit cited by 5NEWS.
Also read: Indian national arrested in US over multi-million-dollar fraud targeting elderly
The two scammers newly met each other
During questioning, Prashant allegedly told investigators he had met Bavadiya only seven days earlier. He claimed she offered him $300 to collect what he described as a “parcel.” He also admitted to knowing the package contained nearly $30,000.
Bavadiya, meanwhile, told police she had arrived in the United States only weeks before the operation that got her arrested. According to the affidavit, she claimed that her family in India was in danger and that she had been instructed to meet Prashant. She also said she was visiting the US for her clothing business.
Detective Ryan Loftus said investigators believe the pair knowingly participated in the fraud operation. However, police have not found evidence that Bavadiya travelled to the US solely to commit fraud.
Authorities also said that they recovered four mobile phones and several SIM cards from the suspects. Investigators believe the devices were used to communicate with other members of the alleged fraud network. HSI is examining the electronic evidence as part of its continuing investigation.
How does the PayPal refund scam work?
According to the Federal Trade Commission (FTC), refund scams typically begin with unsolicited phone calls, emails or pop-up messages which claim a victim accidentally received a refund. Fraudsters persuade victims to access online banking or payment accounts. They then falsely claim that the victims were overpaid. Victims are then pressured into returning the non-existent excess amount through cash pickups, wire transfers or gift cards.
Detective Loftus warned that such criminals are trained professionals who know how to manipulate victims into acting quickly.
“They know what to say, how to say it and when to say it,” Loftus told 5NEWS