Melrose Couple Who Scammed Elderly Must Pay $145K

MELROSE, MA — A Melrose couple will pay $145,000 for their part in a plot that scammed elderly residents for tech support they didn't need.

In a settlement announced Thursday by Attorney General Maura Healey's office, Shalu and Vishal Chawla also agreed to never again run tech support companies.

Shalu Chawla owned VTech Software Solution and Techmate, Inc. His wife assisted in both companies' affairs.

Healey's office said they were part of a nationwide scheme that cost consumers millions. Between June 2014 and Nov. 2016, VTech Software Solution, Inc. sold at least $70,000 in fraudulent "tech support" to Massachusetts residents, according to Healey's office. More than 200 consumers paid between about $200 to $3,000 for what prosecutors said were "unnecessary and illusory computer support services."

"This couple ran a company that scammed elderly residents into paying money for tech support on their computers they didn’t need," Healey said. "We took quick action to stop this scheme, shut down their business, and secure funds for people who were victimized."

Healey's office started investigating after a tip from the Federal Trade Commission. It sued in Dec. 2019, saying VTech Software pushed pop-up windows to computers that said the computer had critical issues. Consumers were directed to call a 1-800 number for tech support, where representatives falsely said it was being provided through Microsoft.

Representatives pretended to fix the bogus problems and asked consumers to buy a support subscription. The company then issued receipts that obscured what the consumers actually paid for and followed up by calling consumers saying computer problems popped up that weren't covered by the subscriptions.

Techmate was alleged to have done similar things.

If the Chawlas are found to be in violation of the settlement, they must pay $2 million.

People who think they may have been a victim can submit a claim for restitution at 617-963-2628.