PROVIDENCE, R.I. — A New York resident has been indicted by a federal grand jury in Rhode Island for allegedly participating in a scheme that defrauded a law firm and multiple businesses out of more than $8 million, according to an announcement from Acting U.S. Attorney Sara Miron Bloom.
Tushal Rathod, 45, of Baldwinsville, N.Y., faces seven counts, including conspiracy to commit wire fraud, wire fraud, aggravated identity theft, conspiracy to commit money laundering, money laundering, concealment of money laundering, and engaging in transactions with criminal proceeds.
Federal prosecutors allege Rathod worked with co-conspirators he met online to collect and launder fraudulently obtained funds, often keeping a 10% cut for himself. The indictment outlines the use of business email compromise, account takeovers, and counterfeit checks to carry out the scheme.
Among the reported victims are a Rhode Island law firm defrauded of more than $163,200, a California credit union that lost approximately $8 million, and an IT company defrauded of $154,900.
According to the indictment:
- Rathod opened and controlled business bank accounts to receive stolen funds and recruited others to do the same.
- He tracked the account activity and shared the details with his co-conspirators.
- He used falsified documents to access and withdraw funds while concealing their origins and movements.
- He converted portions of the illicit proceeds into Bitcoin.
The case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
A federal indictment is an accusation, and Rathod is presumed innocent unless and until proven guilty in court.