Federal authorities have secured a court judgment forfeiting approximately $375,000 in proceeds from a business email compromise scam targeting an Iowa company in 2022.
The U.S. District Court for the Northern District of Iowa issued the forfeiture order after tracing the funds to a Wells Fargo account in the names of Manuel and Ibrahim Hazim, according to the U.S. Attorney's Office for the Northern District of Iowa.
In the scheme, a scammer posed as vendors of the Iowa company and instructed an employee to send payments to a bank account under the fraudster's control. Believing the requests were legitimate invoice payments, the company transferred more than $800,000 to the account in mid-2022.
The fraudster subsequently moved the money through additional bank accounts to obscure its origin. Authorities ultimately seized $372,583.77 in alleged fraud proceeds from the Wells Fargo account.
Checks deposited into the account referenced a firm named "Mack Truck" with "procurement" and "payment" noted in memo lines. Investigators found no legitimate business activity connected to the deposits.
The Hazims claimed innocent ownership and stated the funds came from a currency exchange arrangement but did not provide required sworn statements. Investigation determined the Hazims did not own or operate a Mack Truck business nor engaged in any legitimate transaction with the individual who made the deposits.
U.S. Attorney Leif Olson advised vigilance against such schemes, recommending that individuals examine email addresses carefully, verify requests through direct contact, and report suspected fraud to banks, law enforcement, and the FBI's Internet Crime Complaint Center.
