Victims tricked into sending $3.5 million as part of ‘mistaken refund’ scheme, feds say

Victims were tricked into mailing a Michigan woman a combined $3.5 million as part of a nationwide “mistaken refund” scheme, according to federal authorities.

“People became victims of the scam when they were deceived by an email message falsely claiming that a bank withdrawal had been made from their bank account to allegedly pay for the installation of computer security software,” according to a March 3 news release from the U.S. Attorney’s Office for the Western District of Michigan. “The message invited anyone disagreeing with the charge to call a ‘customer service’ number.”

The scheme targeted “home computer users,” authorities said.

When the users called the “customer service” number, officials said they reached a representative who agreed to immediately reverse a “charge” that had never actually occurred.

As the man said he was working on completing the “refund,” he claimed to have “mistakenly deposited thousands of dollars into the victim’s account because of a keystroke error,” according to the release.

He then asked the callers to rectify the “error” by mailing cash to an address in Battle Creek, Michigan, authorities said. The address belonged to Lavonne Kemp.

She received about $3.5 million from January 2021 to September 2022, according to court records.

Now the 67-year-old woman has been charged with conspiracy to commit mail fraud, records show.

The defense attorney representing Kemp did not immediately respond to a request for comment from McClatchy News on March 6.

Kemp faces up to 20 years in prison, a fine equal to twice the amount gained during the scheme, three years of supervised release and forfeiture of her property, according to the release.

“These allegations are extremely concerning involving an alleged scheme to prey upon unsuspecting victims,” U.S. Attorney Mark Totten said in the release. “I implore the public to remain vigilant, wary, cautious, and to always verify suspicious claims or claims that seem ‘too good to be true’ to help protect yourself from falling victim to potential scams or fraud.”

No one else has been charged in the scam as of March 6, authorities said.

This story was originally published March 6, 2023 at 10:20 AM with the headline "Victims tricked into sending $3.5 million as part of ‘mistaken refund’ scheme, feds say."