33 busted in international fraud scheme

BUFFALO, N.Y. (AP) - Federal authorities have charged 33 people in the United States and Canada with running a fraudulent loan scheme with victims in every state.

U.S. Immigration and Customs Enforcement Director John Morton announced the charges at a news conference Tuesday in Buffalo, where the case began and is being prosecuted.

Morton and U.S. Attorney William Hochul say more than 2,000 victims lost $2.7 million. Investigators say the victims were drawn in by newspaper ads or Internet sites offering loans to people with poor credit, and paid upfront fees for loans that never materialized.

Of those charged, 23 people, including the alleged ringleader, are Canadian and 10 are Americans from Michigan and New York City. Most of the Americans were arrested Tuesday.

One of those suspects is Candice McGraw, who is currently lodged in the Kent County jail on charges of conspiracy and money laundering, records show. She was arrested by the US Marshal;, according to jail records.

Prosecutors say they'll seek extradition of the Canadian suspects.

Coverage from our sister station WIVB out of Buffalo