A large, well-organized fraud ring was dismantled in October 2025 when more than 20 members were arrested on federal charges.
Operation “Silver Shores” was a multi-agency investigative effort to track, trail, and end a sophisticated fraud scheme carried out against elderly victims across the United States. According to the Internal Revenue Service (IRS), those arrested in Florida, Texas and California were members or affiliates of the Norteños, a dispersed network of Northern California gang members.
Noted the IRS Criminal Investigation (CI) Special Agent in Charge, “Let this serve as a clear warning to fraudsters that financial crimes will lead to arrest and prosecution. IRS-CI special agents are committed to tracing illicit proceeds, holding perpetrators accountable and deterring future financial crimes.”
How the Scheme Targeted Elderly Timeshare Owners
Through telemarketing, gang associates targeted seniors owned or had an interest in a timeshare. By impersonating attorneys and agency staff, the fraudsters convinced their victims that they were entitled to significant proceeds of a class action settlement involving timeshares. The catch was the requirement to pay legal and other fees upfront before they received their settlement share.
About 372 seniors were victimized across the United States with a loss of approximately $30 million. While approximately $1.5 million has been seized, it is unlikely the larger share of fraudulently acquired funds will be recovered.
A Sophisticated Money-Laundering Operation
The gang employed a robust financial network to run the money through several stages of money laundering, eventually filtering the money into accounts in Latin America, the United States and other locations abroad. While some money was run through smaller banks with inadequate money laundering safeguards, other funds were moved offshore or through cryptocurrency exchanges. As one would expect, shell companies played a role in moving money from region to region to dilute the ability to trace its criminal origin.
The criminal enterprise employed countermeasures to banking anti-money laundering (AML) strategies and misrepresented material facts to financial entities who requested information about the proceeds. Federal officials say the crew has been more traditionally involved with drug trafficking, but has recently moved into more lucrative fraud scams.
Defendants were charged with conspiracy to commit money laundering and wire fraud, offenses with maximum prison sentences that can reach 20 to 30 years respectively, along with penalties and fines. Silver Shores is a drop in the bucket of money laundering and tax crimes fleecing victims in the United States and elsewhere through increasingly sophisticated technology and strategies.
If you are involved in a small- or large-scale criminal tax enterprise, consider your future and how that might feel if you are the target of the next operation by IRS-CI.
Concerned about being charged with tax fraud?
If you are involved in a tax crime, money laundering or tax evasion, consider your options before an arrest and the attendant publicity limits you and your future. Call us at 440-250-9709 or reach out to set up a consultation. Experienced with criminal tax defense, our tax attorneys serve domestic and international clients from offices in Cleveland and Chicago.
Not sure what to expect if you are already under scrutiny? Download our free ebook, "Understanding Tax Fraud," for insights into warning signs and potential legal defenses.
