2022-02-08 DOJ SDNY press_release 117 KB 4,886 chars

Serbian-Hungarian Dual Citizen Pleads Guilty In Manhattan Federal Court To Multi-Million Dollar Business Email Compromise Scheme

Caption: United States v. Dejan Medic, et al.

summary

Serbian-Hungarian dual citizen Dejan Medic pled guilty to wire fraud for orchestrating a $3.7 million business email compromise scheme that tricked 15 U.S. and European companies into wiring funds to accounts he controlled, including Hungarian banks and gold-conversion channels, and was arrested in Hungary attempting to cross into Serbia with fraud-derived gold bars.

paragraph

Dejan Medic pled guilty to one count of wire fraud for leading a business email compromise scheme that defrauded 15 victim companies of approximately $3.7 million between July 2018 and March 2019. The scheme involved spoofed emails and fraudulent phone calls impersonating executives of European parent companies to induce wire transfers to accounts under Medic’s control, including Hungarian bank accounts and accounts used to convert proceeds into gold. The investigation also uncovered $6.8 million in attempted but unsuccessful frauds, and Medic was arrested in April 2019 with three gold bars linked to the scheme; he faces a maximum 20-year prison sentence.

narrative

Dejan Medic, a Serbian-Hungarian dual citizen, pled guilty in Manhattan federal court to one count of wire fraud for orchestrating a multi-million dollar business email compromise (BEC) scheme that targeted 15 victim companies in the United States and Europe between July 2018 and March 2019. The fraud began with phone calls from European numbers, during which Medic impersonated senior executives of the victims’ parent companies, requesting urgent wire transfers for fabricated debts. This was followed by spoofed emails mimicking legitimate corporate domains to maintain the deception and finalize fraudulent payment instructions. At least $3.7 million was successfully stolen, with funds directed to Hungarian bank accounts controlled by Medic and other European accounts where proceeds were converted into gold. The scheme also attempted to defraud an additional $6.8 million, though those payments were blocked. On April 27, 2019, Medic was arrested by Hungarian authorities while attempting to cross into Serbia, in possession of three serialized gold bars traced to the fraud proceeds. His extradition from Hungary was secured through cooperation between the FBI, the Justice Department’s Office of International Affairs, and Hungarian law enforcement. Medic faces a maximum 20-year prison sentence, with sentencing to be determined by U.S. District Judge Gregory Woods.

Enriched metadata

Scheme: advance-fee (95%)
Court: Southern District of New York
Outcome: pleaded
Victim loss: $6,800,000
Victims: 15

Classified advance-fee(confidence 95%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →

Extracted insights

Dollar amounts 2

$6.80M $6.8 million $1M–$10M
$3.70M $3.7 million $1M–$10M

Entities 3

person dejan medic
company the victim company
scheme_term to one count of wire fraud

Triples 16

Dejan Medic Pled Guilty To Participating In A Business Email Compromise Scheme
Dejan Medic Pled Guilty To One Count Of Wire Fraud
U.S. Attorney Damian Williams Announced That Dejan Medic Pled Guilty To Participating In A Business Email Compromise Scheme
The Scheme Stole Over $3.7 Million From 15 Victim Companies In The United States And Europe
The Scheme Used Fraudulent Phone Calls And Spoofed Email Accounts To Obtain Money From At Least 15 Victim Businesses In The United States
The Scheme Initiated Through A Telephone Call Placed To The U.S.-Based Victim Company From A European Telephone Number
The Caller Posed As Either A Senior Executive Or A Board Member Of The Victim Company’s Europe-Based Parent Company
The Caller Requested The Victim Company’s Assistance With A Purportedly Urgent Wire Transfer Of Funds Regarding Purported Debts Of The Parent Company
The Victim Company Received An Initial Follow-Up Email From An Email Address With A Domain Name That Was Either The Same, Or Misleadingly Similar To, The Victim Company’s Foreign Parent Company Email
The Members Of The Scheme Continued Conversations Using The Spoofed And Other Email Accounts Regarding The Payment Of The Alleged Debt By The Victim Company’s European Parent
The Members Of The Scheme Provided Wire Transfer Information And Worked To Fraudulently Induce The Victim Company Into Wiring Funds To Accounts Controlled By A Member Of The Scheme
At Least 15 Victim Companies Suffered A Total Loss Of Approximately $3.7 Million Through The Course Of The Scheme
The Investigation Revealed That The Scheme Also Attempted To Obtain Approximately $6.8 Million In Additional Fraudulent Payments From U.S.-Based Victim Companies That Were Unsuccessful
At Least Several Victim Companies Were Fraudulently Induced To Send Funds Directly To Hungarian Bank Accounts Opened And Controlled By Medic
Some Of The Victim Companies Sent Proceeds To Other European Bank Accounts That Were Converted To Gold
Medic Was Arrested By Hungarian Authorities Attempting To Cross The Border Into Serbia In Possession Of, Among Other Things, Three Serialized Gold Bars That Were Proceeds Of The Fraud Scheme

View original DOJ press releasejustice.gov

Extracted body text (4,886c)

Press Release Serbian-Hungarian Dual Citizen Pleads Guilty In Manhattan Federal Court To Multi-Million Dollar Business Email Compromise Scheme Tuesday, February 8, 2022 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Damian Williams, the United States Attorney for the Southern District of New York, announced today that DEJAN MEDIC pled guilty to participating in a business email compromise scheme that stole over $3.7 million from 15 victim companies in the United States and Europe. MEDIC pled guilty to one count of wire fraud before U.S. District Judge Gregory Woods, to whom his case is assigned. U.S. Attorney Damian Williams said: “As he admitted in court today, Dejan Medic participated in a scheme to defraud Americans, and others worldwide, from thousands of miles away. Medic’s plea today should serve as a warning to those who think they can victimize others and hide behind the anonymity of the internet at a safe distance: the United States and its international partners will find you and hold you accountable.” According to the Indictment and other documents filed in the case, including the defendant’s statements under oath during his guilty plea: From in or about July 2018, until approximately March 2019, the defendant engaged in a business email compromise scheme that used fraudulent phone calls and spoofed email accounts to obtain money from at least 15 victim businesses in the United States (the “Victim Companies”). The scheme was typically initiated through a telephone call placed to the U.S.-based Victim Company from a European telephone number. During this call, the caller posed as either a senior executive or a board member of the Victim Company’s Europe-based parent company. During the call, the caller requested the Victim Company’s assistance with a purportedly urgent wire transfer of funds regarding purported debts of the parent company. After the call, the Victim Company then received an initial follow-up email from an email address with a domain name that was either the same, or misleadingly similar to, the Victim Company’s foreign parent company email—a process known as email “spoofing.” The members of the scheme would continue conversations using the spoofed and other email accounts regarding the payment of the alleged debt by the Victim Company’s European parent. The members of the scheme then provided wire transfer information and worked to fraudulently induce the Victim Company into wiring funds to accounts controlled by a member of the scheme. At least 15 Victim Companies suffered a total loss of approximately $3.7 million through the course of the scheme. In addition, the investigation revealed that the scheme also attempted to obtain approximately $6.8 million in additional fraudulent payments from U.S.-based Victim Companies that were unsuccessful. As part of the scheme, at least several Victim Companies were fraudulently induced to send funds directly to Hungarian bank accounts opened and controlled by MEDIC. In addition, some of the Victim Companies sent proceeds to other European bank accounts that were converted to gold. Thereafter, on or about April 27, 2019, MEDIC was arrested by Hungarian authorities attempting to cross the border into Serbia in possession of, among other things, three serialized gold bars that were proceeds of the fraud scheme. * * * MEDIC, 49, a resident of Szabadk, Serbia, pled guilty to one count of wire fraud, which carries a maximum prison term of 20 years. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. Williams praised the FBI for their outstanding investigative work on this case. The Justice Department’s Office of International Affairs provided significant assistance in the investigation and securing the extradition of MEDIC from Hungary. This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Jilan Kamal and Louis A. Pellegrino are in charge of the prosecution. Contact Nicholas Biase (212) 637-2600 Updated February 9, 2022 Topic Financial Fraud Component USAO - New York, Southern Press Release Number: 22-038

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