NY prosecutors indict trio for AI-driven fraud netting $129 million
Three defendants face charges after using artificial intelligence to mimic executives and lawyers, targeting businesses in the US, UK and Europe.
By Tomas Rahman ·
Federal prosecutors in New York indicted three individuals on Thursday for an alleged scheme that stole approximately $129 million using artificial intelligence to impersonate corporate leaders and legal professionals.
The indictment names Jacob Soall, 41, Sharon Hazan, 54, and Guy Sheetrit, 42. The three hold citizenships in Spain, the United Kingdom, Israel, and the United Arab Emirates. They face charges of wire fraud, aggravated identity theft, and money laundering in the US District Court in New York.
Court documents state the group targeted thousands of businesses over a period exceeding 18 months. Victims included hospital systems in Missouri and California, a bank in Rhode Island, a financial technology firm in Britain, a mutual fund company in Massachusetts, and a pet food manufacturer in Florida.
The scheme relied on employees in accounting departments receiving emails purportedly from their company’s chief executive. These messages requested help with confidential financial transactions. The defendants then arranged phone or video calls, using AI to replicate the voices and sometimes the visual appearances of the executives.
During these calls, the employees were introduced to an attorney supposedly from a major law firm. Prosecutors alleged Soall primarily posed as a British lawyer, using a handwritten script titled “Lawyer Call” to establish credibility. The fake lawyer instructed victims to wire large sums to bank accounts in various countries.
Prosecutors said the stolen funds were converted into cryptocurrency to hide their source before being distributed among the defendants and other participants. Hazan and Soall were detained in Spain between June and September, while Sheetrit was arrested in the United Kingdom during the same window.
The US Attorney's Office noted that Hazan was convicted in a New York court in 2008 for conspiracy to commit bank fraud. FBI Assistant Director in Charge James C. Barnacle, Jr., stated the case demonstrates the use of advanced technology in large-scale fraud. Each charge carries a maximum 20-year prison term, except for aggravated identity theft, which carries a two-year sentence. Attorneys for Soall and Sheetrit did not immediately respond to requests for comment, and it was unclear if Hazan had legal representation.
