Salem Man Among 19 Charged In Ride-Share Fraud Scheme

SALEM, MA — A Salem man was among 19 Brazilian nationals charged Tuesday in a nationwide conspiracy to set up fraudulent ride-share and delivery accounts using more than 2,000 stolen identities and then selling those accounts to those who might not be qualified to drive for those services, according to the U.S. District Attorney's Office.

The U.S. Attorney's Office said Jordano Augusto Lima Guimaraes, 34, a Brazilian national residing in Salem, was among eight Massachusetts residents charged. Others from the state charged included current or former residents of Lowell, Lynn, Revere, Saugus and Woburn.

Nine suspects in the scheme remained at large as of Tuesday morning.

The U.S. Attorney's Office accuses the suspects of using the companies' referral bonus programs to monetize the stolen identities of more than 2,000 known victims. The Internal Revenue Service said 1099s were generated in the victims' names making them responsible for taxes owed on the income.

"The scheme alleged in today's charges was extensive, violated customers' privacy, and enabled unqualified drivers to work for ride-share and food delivery services," said Acting U.S. Attorney Nathaniel R. Mendell. "Millions of us rely on these services every day for transportation and to have meals and groceries delivered to our homes. They are an important part of the economy, especially now."

Mendall said the accounts were sold to those who did not meet minimum requirements for the ride services that included being eligible to work in the United States or the ability to pass a background check.

"I encourage individuals who believe they may be a victim of this fraud to contact my office," Mendall said.

For two years starting in January 2019, the complaint accuses the defendants of trying to defraud at least five different ride-share or delivery companies through obtaining images of victims' driver's licenses and Social Security numbers, then creating fake accounts in their names.

The defendants are accused of keeping referral bonuses from drivers using fraudulent accounts and using "bots" to simulate rides that were never taken through GPS spoofing technology to exploit ride-share and delivery companies' systems.

"These individuals are accused of executing a nationwide con in which they dragged thousands of innocent people into their scheme by stealing their identities," Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. "They thought it would be an easy way to generate some quick money, but in doing so they potentially compromised public safety by putting people behind the wheel couldn't get jobs with these companies on their own."

Those who believe they may have been a victim of the allegations, in this case, can go here to report it.