Los Angeles, CA — Federal authorities have arrested five Southern California residents for their alleged roles in a massive international fraud scheme that defrauded victims in Germany of more than €300 million (approximately $347 million USD).
According to the U.S. Department of Justice (DOJ), the suspects participated in a highly coordinated financial operation that used deceptive tactics to siphon money from unsuspecting individuals across Europe.
Scheme Involved Small, Repeated Transactions
Investigators say the suspects designed the fraud to fly under the radar by initiating millions of small debit and credit card charges, each typically under €50 (around $57 USD). This method was intended to avoid suspicion and detection by both financial institutions and victims, many of whom failed to notice the minor recurring withdrawals.
The charges were linked to fake or non-existent companies, supported by fictitious websites that could only be accessed through direct links or URLs. These online fronts helped conceal the scale of the operation while giving it a semblance of legitimacy.
Collusion with German Payment Processors
The DOJ revealed that the fraud network’s operators colluded with German payment service processors, including executives and compliance officers, to ensure the illicit payments were processed successfully.
“The operators of the network then colluded with German payment service processors – including their executives and compliance officers – to process these payments,” DOJ officials said. “Former employees and executives of German payment processors are among those arrested.”
German authorities described the scheme as complex and far-reaching, noting that it resulted in the formation of a shadow financial system within Germany’s legitimate banking infrastructure.
Five Southern California Suspects Arrested
On November 5, U.S. Marshals arrested the following five Southern California residents in connection with the case:
- Medhat Mourid, of Woodland Hills
- Andrew Garroni, of Los Angeles
- Guy Mizrachi, of Agoura Hills
- Ardeshir Akhavan, of Irvine
- Tunde Benak, of Irvine
Their arrests occurred simultaneously with enforcement operations in Germany, Italy, Luxembourg, Spain, Cyprus, the Netherlands, the United Kingdom, Canada, and Singapore.
Extradition Expected
Following their initial court appearances in the United States, officials confirmed that all five suspects are expected to be extradited to Germany to face prosecution for their alleged crimes.
Authorities say the case underscores the growing global cooperation between international law enforcement agencies in fighting cyber-enabled financial crime.
Global Cooperation in Action
The coordinated arrests highlight the strong partnership between U.S. and European investigators, who worked across multiple jurisdictions to dismantle the transnational operation. Officials say the probe remains active as additional suspects and accomplices are being investigated.
This case demonstrates how modern technology and financial systems can be exploited for large-scale fraud — and how international teamwork is key to bringing such perpetrators to justice.
What do you think about this massive fraud case? Should international suspects be tried in the countries where victims live, or should they face justice in their home nations? Share your thoughts in the comments below!
