ATLANTA - Malachi Mullings has been sentenced to 10 years in federal prison for laundering more than $4.5 million derived from romance fraud scams and business email compromise schemes, including a criminal conspiracy that defrauded a health care benefit program.
“Motivated by greed, Mullings and his co-conspirators brazenly stole millions of dollars from companies and elderly victims located throughout the United States,” said U.S. Attorney Ryan K. Buchanan. “This case demonstrates our office’s commitment to collaborate closely with our law enforcement partners to bring to justice those who perpetrate these frauds, including at the expense of elderly citizens especially vulnerable to these schemes.”
“Malachi Mullings used various schemes to fraudulently obtain money to feed his greed, and in some cases took advantage of the elderly to do it,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents are skilled financial investigators who can unravel complex financial transactions and money laundering schemes criminals use to hide their ill-gotten money. We will also continue pursuing criminals who commit financial fraud on government programs, financial systems, and the elderly.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: From at least 2019 through July 2021, Mullings opened 20 bank accounts in the name of a sham company, The Mullings Group LLC. Mullings used those accounts to launder millions of dollars of fraud proceeds generated by business email compromise (BEC) schemes targeting, among others, a health care benefit program and private companies, and romance fraud scams targeting numerous individual victims, several of whom were elderly.
Together with his co-conspirators, Mullings engaged in financial transactions designed to conceal the fraud proceeds and used some of the funds to purchase luxury items such as expensive cars and jewelry. In one instance, Mullings laundered $310,000 that was fraudulently diverted from a state Medicaid program intended as reimbursement for a hospital. In another instance, he obtained $260,000 from a romance scam perpetrated on an elderly victim which he used to purchase a Ferrari.
Malachi Mullings, 31, of Sandy Springs, Georgia was sentenced by U.S. District Judge Michael L. Brown to 10 years in prison followed by three years of supervised release. He was also ordered to pay restitution to victims after pleading guilty on January 17th this year.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force which focuses on investigating foreign-based fraud schemes affecting American seniors such as romance scams phone scams mass-mailing fraud schemes tech-support scams etc.
This case was investigated by multiple agencies including IRS Criminal Investigation FBI US Department Health Human Services Office Inspector General etc., Assistant U.S Attorney Kelly K Connors prosecuted it alongside Trial Attorneys Gary Winters Chris Wenger National Rapid Response Strike Force Fraud Section Criminal Division.
For further information contact U.S Attorney Public Affairs Office USAGAN.PressEmails@usdoj.gov or (404)581-6016 Internet address http://www.justice.gov/usao-ndga