Two Indian nationals have pleaded guilty for their alleged roles in a fraud scheme that targeted elderly victims in Gentry, Arkansas, according to court records and local authorities.
Gajera Prashant pleaded guilty on June 29, while Dharaben Bavadiya entered a guilty plea on August 17. Both were sentenced to five years in prison, with the sentences suspended, according to authorities.
Investigators said the pair was involved in a PayPal refund scam, a type of fraud in which criminals falsely tell victims that they have received money by mistake and must return it. Authorities said the operation relied heavily on intimidation and deception to target elderly people.
Gentry Police Detective Ryan Loftus told 5NEWS, “They eventually convince you that you’re going to get fired if they don’t get that money back. But in reality, the money was never there.”
Authorities believe Prashant and Bavadiya served as couriers or “middlemen” for a larger fraud network. Homeland Security Investigations (HSI) is continuing to investigate the broader operation.
The arrests came after a coordinated sting involving the Gentry Police Department, HSI and Trilogy Media, a YouTube-based scam-baiting group that works with law enforcement to expose fraud operations.
Investigators said Trilogy Media posed as a potential victim and convinced the suspects to travel from India to collect $29,500 in cash.
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The money, however, was fake. Gentry Police Officer David Williamson went undercover and posed as an elderly victim carrying counterfeit currency.
Williamson wore grey hair as part of his disguise and approached the suspect slowly during the planned exchange. Investigators said the suspect was required to provide the code word “Angel” and hand over a $1 bill containing a predetermined serial number before receiving the package.
Once officers confirmed the serial number, the exchange went ahead.
Police said the suspects changed the meeting location several times between Harp’s Food Store and Jim’s Razorback Pizza before the transaction was completed. The Highfill Police Department’s Drone Team tracked their movements during the operation.
Officers arrested the suspects after they collected the fake cash. According to the arrest affidavit cited by 5NEWS, several cameras captured the exchange.
During questioning, Prashant allegedly told investigators that he had known Bavadiya for only seven days. He said she offered him $300 to pick up what he described as a “parcel.” He also acknowledged that he knew the package contained nearly $30,000.
Bavadiya told police that she had arrived in the United States just weeks before the operation. According to the affidavit, she said her family in India was in danger and that she had been instructed to meet Prashant. She also told investigators that she was in the US for her clothing business.
Detective Loftus said investigators believe both suspects knowingly took part in the fraud operation. However, authorities have not found evidence that Bavadiya came to the United States specifically to commit fraud.
Police recovered four mobile phones and several SIM cards from the suspects. Investigators believe the devices may have been used to communicate with other people involved in the alleged fraud network. HSI is reviewing the electronic evidence as its investigation continues.
The Federal Trade Commission (FTC) has warned that refund scams often begin with unsolicited phone calls, emails or pop-up messages claiming that a consumer accidentally received a refund.
Scammers then persuade victims to access their online banking or payment accounts before falsely claiming that they were given too much money. The victims are pressured to return the supposed excess through methods including cash pickups, wire transfers or gift cards.
Detective Loftus warned that fraudsters often have extensive experience manipulating victims and creating a sense of urgency.
“They know what to say, how to say it and when to say it,” Loftus stated 5NEWS.