Three Accused of Using AI to Impersonate Executives in $129 Million Scam

Federal prosecutors in New York formally charged three individuals with stealing approximately $129 million by using artificial intelligence to impersonate corporate executives and lawyers. The indictment, filed Thursday in U.S. District Court, accuses Jacob Soall, Sharon Hazan, and Guy Sheetrit of electronic fraud and aggravated identity theft. The three men, ranging in age from 41 to 54, are also facing charges for money laundering.

The scheme operated for more than 18 months, targeting thousands of companies worldwide. Victims included hospital systems in Missouri and California, a Rhode Island bank, a UK fintech firm, a Massachusetts investment fund, and a Florida pet food company. The defendants hailed from Spain, the UK, Israel, and the UAE, according to the court documents. The case file remained confidential in online records through Thursday evening, and the U.S. Attorney's Office for the Southern District of New York did not immediately respond to media inquiries.

The group targeted corporate accounting departments with emails pretending to be chief executives. They requested assistance with confidential financial transactions. During follow-up phone or video calls, the defendants used AI to mimic the voice and sometimes the visual appearance of the impersonated executives. They then directed employees to contact a lawyer at a major firm, a role the trio also impersonated.

Soall primarily posed as UK-based attorneys. Prosecutors noted he used a handwritten script titled 'Lawyer Call' to sound authentic when speaking with victims. The fake lawyer instructed employees to wire large sums of money to bank accounts around the world. The funds were converted into cryptocurrency to obscure their origin before being distributed among the three defendants and other associates.

The arrests took place between June and September. Hazan has a prior legal history, having been found guilty of conspiracy to commit bank fraud in a New York court in 2008. James C. Barnacle, Jr., the FBI’s deputy director in charge, stated that the case illustrates how advanced technology can facilitate large-scale fraud. He emphasized the agency’s commitment to adapting its capabilities to identify and dismantle groups harming local businesses.

If convicted, each charge carries a maximum penalty of 20 years, except for aggravated identity theft, which carries a two-year maximum sentence. The defendants are currently awaiting trial in the Southern District of New York.