LOS ANGELES — Federal authorities have arrested five Southern California residents accused of masterminding a sophisticated international fraud operation that allegedly siphoned over €300 million (approximately $347 million) from millions of German victims through a systematic campaign of unauthorized credit and debit card charges.
The suspects—Medhat Mourid of Woodland Hills, Andrew Garroni of Los Angeles, Guy Mizrachi of Agoura Hills, Ardeshir Akhavan of Irvine, and Tunde Benak of Irvine (a Canadian national)—were apprehended by the U.S. Marshals on November 5.
The arrests were made following an extradition request from German prosecutors. Four of the suspects are U.S. citizens, and all five are now facing extradition to Germany to stand trial on charges related to the massive cross-border financial fraud.
The "Micro-Fraud" Method
According to the U.S. Department of Justice (DOJ), the ring allegedly colluded directly with executives and compliance staff at German payment processing companies. This insider access was critical to their strategy.
The group specialized in a "micro-fraud" technique, initiating a high volume of small, fraudulent transactions, often under €50 each, designed to "fly under the radar" and avoid detection by consumers and financial institutions.
These charges were processed through a network of shell companies and routed via "dark websites" that were hidden from the public internet and accessible only through direct links. The tactic preyed on consumer complacency, relying on the high probability that victims would not notice or bother to dispute the tiny, recurring deductions. When aggregated, these small charges amounted to a colossal nine-figure haul.
A Global Web of Collusion
Eurojust, the European Union's judicial cooperation agency, described the case as a "tightly-knit criminal network" with three main branches operating across a staggering list of countries, including Germany, Italy, Luxembourg, Spain, Cyprus, the Netherlands, the UK, Canada, and Singapore.
In a coordinated global sweep that mirrored the arrests in California, authorities in Germany also arrested several executives from four different German payment processing companies, underscoring the deep level of insider collusion required to pull off the heist.
An FBI special agent involved in the case described it as "one of the largest credit card fraud cases in recent history," which was only cracked through extensive international cooperation between the U.S., Germany, and other partners.
"Shadow Payment Systems" and Public Fury
The arrests land just days after several German politicians issued public warnings about the rise of a "shadow payment system" in Europe. They cautioned that legitimate financial technology (FinTech) firms were increasingly being exploited by, or becoming complicit in, money laundering and processing fraudulent transactions.
Public reaction on social media in both Germany and the U.S. has been one of outrage at the scale and sophistication of the ring. There are widespread calls for severe accountability, not just for the alleged fraudsters, but also for the corporate executives and financial institutions that enabled them.
Legal experts suggest this case could set a new precedent for international extradition in complex, cross-border financial cybercrimes, a growing challenge in the age of globalized e-commerce.
The U.S. Attorney's Office in Los Angeles is currently handling the suspects' initial court appearances and extradition hearings, while German prosecutors will lead the primary prosecution.
While authorities are encouraging victims to come forward, officials have stated that the likelihood of recovering the full €300 million in stolen funds remains "extremely low."
(Based on information from the U.S. Department of Justice, Eurojust, Fox News, KTLA, and Breitbart News.)
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