Feds accuse Waterloo woman of wire fraud in a $400K ‘money mule’ case

A federal civil lawsuit has been filed against a 74-year-old Waterloo woman who allegedly took nearly $400,000 from scammers following repeated warnings to stop, the U.S. Attorney’s Office announced Thursday.

Janice M. Augustine faces the wire fraud lawsuit, according to a news release from the U.S. Attorney’s Office for the Southern District of Illinois.

Augustine could not be reached for comment Thursday.

“According to court documents, the defendant is accused of moving nearly $400,000 in fraud proceeds even after receiving multiple warnings by federal law enforcement officers,” stated the news release.

Augustine is accused of being a “money mule” and “was recruited to participate in the scheme by an individual claiming to be an American working abroad who was in search of a romantic relationship,” the news release states.

“The term ‘money mule’ refers to individuals who receive funds and send the money on to the criminals who conduct the schemes.”

The news release states the “civil complaint alleges Augustine knowingly accepted money obtained via fraud schemes. The money was sent via wire transfers and electronic deposits into her personal bank accounts. Augustine then transferred the funds to the perpetrators who had committed the fraud.”

“The federal complaint alleges that a perpetrator convinced Augustine he was involved in a romantic relationship with her in summer 2022,” according to the news release.

This person then persuaded Augustine to transmit fraud proceeds, the news release states. In January 2023, an FBI agent interviewed Augustine about her suspicious bank activity, and the FBI warned her and encouraged her to end the relationship.

“Undeterred, Augustine registered a limited liability company with the Illinois Secretary of State and opened a new bank account in April 2023 in the LLC’s name,” the news release states.

In May 2023, special agents with IRS Criminal Investigation visited Augustine at her Waterloo residence “to discuss her unusual financial activity and again explained how her actions were illegal,” according to the release.

“Criminals scour online dating and social media websites looking for lonely or vulnerable people to exploit,” U.S. Attorney Rachelle Aud Crowe said in the news release. “Oftentimes, criminals exploit elderly or vulnerable victims by tricking them into believing they are interested in a romantic relationship. But other times, the criminals persuade elderly or vulnerable people into helping them launder the money they receive by defrauding others.”

This story was originally published October 19, 2023 at 1:44 PM.