Federal authorities in Cleveland announced the arrests on January 31, 2026, following an FBI investigation into scams defrauding victims of hundreds of thousands of dollars. Patel and Bhatt each face three counts of money laundering, with the scheme operating in Ohio, Michigan, and Pennsylvania. The duo appeared in federal court on Friday, waiving preliminary hearings; Patel’s detention hearing is set for February 6, while Bhatt faces an ICE detainer.
Scam Tactics
Scammers impersonated entities like PayPal, Microsoft tech support, and even Federal Trade Commission representatives to build trust. Victims, including a Toledo woman who lost over $40,000 in cash, were directed to unusual payment methods such as gold bars, Bitcoin, and bulk cash to “secure” funds or resolve fabricated issues. These tactics mirror broader elder fraud patterns where urgency and authority figures pressure quick, unconventional transfers.
Investigation Background
The FBI’s Cleveland Division Cyber Squad led the probe, uncovering the men’s role in concealing fraud proceeds within a larger network. Court documents describe Patel directing couriers to collect illicit gains, highlighting coordination in moving laundered funds. This case underscores rising cross-border financial crimes leveraging digital assets and physical valuables like gold.
Victim Impact
Victims spanned states, suffering significant losses from tech support cons, Bitcoin scams, and fake refunds escalated into larger demands. One documented case involved deception claiming hacked accounts, prompting gold conversions for “safety.” Authorities note vulnerabilities among elderly targets, with total fraud exceeding hundreds of thousands in this ring alone.
Legal Proceedings
If convicted, the suspects face substantial penalties under federal money laundering statutes, potentially including lengthy prison terms and fines. Bhatt, a University of Toledo student, remains under immigration hold, complicating her status. The ongoing probe may yield additional charges or accomplices.
Broader Context
This arrest aligns with a surge in scams involving Indian-origin perpetrators targeting US victims with gold and crypto demands. Similar cases include 2024 convictions of Punit Punit and Anil Dhiman for a $200,000+ gold bar theft in Colorado, and 2025 charges against Jagdishkumar Nandani in Wisconsin. In Alaska, Vikash Pandey faced indictment for a $4.5 million tech scam funneling funds to India. US-India cooperation has intensified, as seen in a 2025 crypto laundering arrest at Washington’s request.
Official Statements
FBI officials urged caution against unsolicited demands for payments in gold, crypto, or cash, emphasizing verification of caller identities. “The investigation is ongoing,” they stated, warning of evolving tactics in cyber-financial crimes. No comments from defendants or counsel were available at press time.
SEO-Optimized Insights
Keywords like “Indian-origin money laundering US arrest,” “gold bars crypto scam victims,” and “FBI Cleveland scam bust” dominate searches for such cases. This incident highlights AML challenges in cryptocurrency and precious metals, relevant for compliance professionals tracking global enforcement. Rising incidents demand vigilant reporting and international regulatory alignment.