A Florida man, Michael Young, has been sentenced to six years in federal prison for his role in a transnational fraud network that stole millions of dollars from American consumers. The sentence was handed down after Michael Young pleaded guilty to conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act, commonly known as the RICO Act.
According to court documents, the fraud scheme targeted bank accounts across the United States. The criminal enterprise operated across borders and used multiple layers of people and businesses to hide its activities. The scheme was designed to be difficult to detect and involved both domestic and foreign participants.
In June 2025, Michael Young admitted his role in the racketeering conspiracy. Authorities confirmed that 22 defendants have been charged in four different federal districts in connection with the case. So far, seven individuals have been convicted.
How the Fraud Scheme Worked
The fraud network obtained what are known as “lead lists.” These lists contained sensitive banking information belonging to consumers. Some of the data came from payday loan applications. Payday loans are often used by individuals who are already facing financial hardship.
Using the information from these lead lists, members of the enterprise made unauthorized debits from victims’ bank accounts. An unauthorized debit means money was withdrawn without the account holder’s permission.
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When banks questioned the transactions, members of the fraud network falsely claimed that the charges had been authorized. This allowed the stolen money to move through the banking system.
To hide the fraud, the enterprise created numerous shell entities. These shell companies appeared legitimate on paper but were used to move and conceal stolen funds. The group also used money laundering techniques to make it harder for authorities to trace the money.
For years, Michael Young worked for a co-conspirator based in Southern California who ran the domestic side of the operation. Young helped foreign co-conspirators obtain lead lists, establish U.S. banking relationships, and coordinate nominal owners, known as “signers,” for shell entities. Through this work, he was involved in nearly every part of the scheme. Young later replicated the fraud operation himself in order to make more money.
Charges, Investigation, and Official Statements
Michael Young pleaded guilty in June 2025 to one count of conspiracy under the RICO Act. He was sentenced to six years in prison.
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Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division stated that the sentence holds accountable another member of a transnational criminal network that stole millions from unsuspecting Americans. He explained that these schemes often span multiple jurisdictions and rely on layers of conspirators to hide their operations.
First Assistant U.S. Attorney Bill Essayli for the Central District of California said global criminal groups use U.S.-based individuals to exploit the nation’s banking system and launder stolen money. He commended law enforcement partners for bringing the case forward.
Inspector in Charge Eric Shen of the U.S. Postal Inspection Service Criminal Investigations Group stated that those involved hid behind fake companies while abusing people’s financial information. He noted that victims included individuals from payday loan lists who were already struggling financially.
The investigation was conducted by the U.S. Postal Inspection Service. The case was prosecuted by Trial Attorneys Wei Xiang and Meredith B. Healy of the Justice Department’s Criminal Division Fraud Section, along with Assistant U.S. Attorney Monica E. Tait for the Central District of California.
The Justice Department is urging individuals to regularly review bank, credit card, and other financial statements. Any unauthorized debit should be reported immediately to the financial institution and to law enforcement. Reports can also be filed with the Federal Trade Commission through its official reporting system or by phone.