Between 2019 and 2024, the co-conspirators targeted financial systems by establishing fraudulent commercial fronts and securing access through three separate payment processing platforms. These unauthorized payment debits were funneled directly into accounts tied to fictitious corporate entities such as Sebi Property Management and Vollen Medical Center. Once processed, the illicit proceeds were promptly disbursed into separate accounts or spent directly by the participants. The arrests concluded a joint multi-jurisdictional investigation coordinated by the FBI's New York Field Office.
Key points
The wire fraud and money laundering conspiracy charges each carry maximum statutory penal…: The wire fraud and money laundering conspiracy charges each carry maximum statutory penalties of up to 20 years.
Aggravated identity theft charges filed against both defendants require a mandatory minim…: Aggravated identity theft charges filed against both defendants require a mandatory minimum prison sentence of two years.
The multi-state fraudulent enterprise utilized accounts opened through at least three sep…: The multi-state fraudulent enterprise utilized accounts opened through at least three separate commercial payment processors.
Sources checked by our analysis pipeline: 1
Creating businesses that exist only on paper can provide an appearance of legitimacy, but federal prosecutors allege that two men used fictitious companies and stolen identities to carry out a multimillion-dollar financial fraud scheme. The alleged operation involved setting up shell companies in other people's names, registering accounts with payment processors and initiating unauthorised withdrawals from third-party bank accounts. Investigators say the scheme attempted to obtain approximately $3.7 million over five years.
According to a November 10, 2026, announcement by the US Attorney's Office for the Southern District of New York, Paris Baker and Michael Sullivan were arrested in connection with the alleged operation. Baker was arrested in Thousand Oaks, California, while Sullivan was taken into custody in Calumet City, Illinois. Both men face federal charges involving wire fraud, access device fraud, money laundering and aggravated identity theft.
How the alleged fraudulent payment scheme worked
According to the criminal complaint, Baker, Sullivan and others participated in the scheme between approximately 2019 and 2024. They allegedly established fictitious business entities using the identities of people whose personal information had been stolen.
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