Indian American charged in $13 million tech support scam

New Jersey-based Manoj Yadav targeted over 7,000 small business owners and elderly US victims

An Indian American man has been charged in a technical support scam that defrauded more than 7,000 victims, mainly small business owners and the elderly, in the US of more than $13 million.

Manoj Yadav, 40, of Clifton, New Jersey, was charged by complaint with one count of conspiracy to commit wire fraud, US District Attorney Philip R. Sellinger announced in a press release Thursday.

According to court documents, from 2017 through 2023, Yadav and his conspirators, many of whom were in India, fraudulently held themselves out as a technology support company affiliated with a major US  business and accounting software company that developed and sold a widely used accounting software product.

READ: Indian American gets 27-year jail for $463 million Medicare fraud (August 21, 2023)

They operated under multiple fraudulent business names, including “Phebs Software Services, LLC,” “Phebs Software Services,” “PN Bookkeeping Services,” “Phebbs Consulting,” “Quickbooks Tech Assist,” “Quickbook US,” “Quickbooks Accounting,” and “Quickbooks Support Team.”

The conspirators would contact victims under the guise of fixing victims’ technical issues with the accounting software. After receiving tech support from the conspirators under these fraudulent pretenses, the victims would either be charged exorbitant fees or additional subscription fees.

These “services” were all fraudulent: They would not cost any additional money for customers who contacted the actual software company, and the software company never authorized Yadav or his conspirators to act on its behalf or charge any fees.

READ: Indian American admits to tax fraud scheme (July 12, 2023)

Yadav personally participated in the scheme by charging the victims for the fraudulent technology support services and funneling millions of dollars from these victims to his conspirators.

Yadav fraudulently obtained these funds through Phebs Software Services, LLC, which Yadav himself formed. That entity did business as both “Phebs Software Services” and “Quickbooks Accounting.”

Yadav also used these entity names to falsely hold himself out to banks and victim customers as an accounting company legitimately affiliated with the software company.

READ MORE: Indian American CEO gets two-year jail for bank fraud (August 29, 2023)

He did this to prevent chargebacks, Better Business Bureau complaints, and the closure of bank accounts. Yadav sent his conspirators over $13 million in funds obtained from victims and would routinely keep approximately 17 percent when he wired funds to the conspirators.

The count of conspiracy to commit wire fraud carries a maximum penalty of 20 years in prison and a fine of $250,000 or twice the gross profit or loss caused by the offense, whichever is greatest, according to the press release.

“The defendant and his conspirators are alleged to have misled their numerous victims into thinking that they were a legitimate technology support company affiliated with a major software company,” Sellinger stated.

“After claiming to provide technical support for issues involving the software company’s popular accounting software, they allegedly charged the victims exorbitant fees for purported support services that were not authorized by the software company.”

“We allege Yadav lied to software users and forced them to pay for services that would usually come free with their initial purchase,” FBI Special Agent in Charge James E. Dennehy said.

“The amount he’s accused of stealing from his victims and the number of victims seem shocking; however, we are seeing an incredible increase in all types of tech support scams,” he said.

“The fraudsters are pretty savvy in how they con money out of people, even those of us who think we’re smart enough to not fall for it,”  Dennehy said advising those who think they are a victim to reach out to the FBI.