Three Indicted for $129 Million AI Fraud Scheme Impersonating Executives and Lawyers

Federal prosecutors in New York have indicted three men accused of orchestrating a sophisticated fraud scheme that leveraged artificial intelligence to impersonate corporate executives and legal professionals. The defendants, Jacob Soall, Sharon Hazan, and Guy Sheetrit, face charges including wire fraud and aggravated identity theft. According to court documents, the trio targeted thousands of companies worldwide over a period of more than eighteen months, ultimately stealing approximately $129 million.

The victims of the scheme included a diverse range of organizations across multiple countries. Court records identify hospital systems in Missouri and California, a bank in Rhode Island, a financial technology firm in the United Kingdom, a mutual fund company in Massachusetts, and a pet food company in Florida. The defendants were also charged with money laundering as part of their efforts to move the stolen funds.

The suspects hail from various international locations, including Spain, the United Kingdom, Israel, and the United Arab Emirates. They were arrested between June and September of this year, with Soall and Hazan apprehended in Spain and Sheetrit captured in the United Kingdom. Extradition requests for all three individuals are currently pending before the courts.

The fraud operation often focused on the accounting departments of target companies. The defendants would send emails that appeared to come from a company's chief executive officer, requesting assistance with confidential financial transactions. To solidify the deception, they coordinated phone or video calls where they used AI tools to mimic the voice and sometimes the visual image of the impersonated executive.

During these calls, the defendants instructed the employees to contact an attorney at a prominent law firm. The group was prepared to impersonate this legal professional as well. Soall specifically targeted attorneys from the United Kingdom and reportedly used a handwritten script titled 'Lawyer Call' to maintain the illusion of a real legal representative while speaking with victims.

Once the impersonated attorney was on the line, they would direct the employee to wire large sums of money to bank accounts located around the world. To obscure the origin of the funds, the trio converted the money into cryptocurrency. The digital assets were then distributed among the defendants and other associates involved in the scheme.

Sharon Hazan has a prior criminal history in the United States. In 2008, she was convicted in a New York court of conspiracy to commit bank fraud. The three defendants used various nicknames during the scheme, including 'Rocky Balboa,' 'Superman Cash,' and 'Fat Boy.'

FBI Assistant Director in Charge James C. Barnacle Jr. stated that the case highlights how advanced technology can be utilized to commit fraud on a large scale. He noted that as criminals continue to use emerging technologies, the FBI is committed to adapting its capabilities to identify and disrupt those who target businesses in the New York area.

If convicted on all counts, the defendants face a maximum sentence of 20 years in prison. The charge of aggravated identity theft carries a separate maximum sentence of two years. Lawyers for Soall and Sheetrit did not immediately respond to requests for comment, and it remained unclear if Hazan had retained an attorney. The U.S. Attorney's Office for the Southern District of New York also did not immediately respond to media inquiries.

The indictment was filed in a U.S. District Court in New York on Thursday. The case underscores the growing threat of AI-driven impersonation in corporate finance, where the ability to replicate human voice and appearance has become a powerful tool for fraudsters.