BRIDGEPORT, CT — A federal grand jury has indicted a Dubai resident on fraud, money laundering and identity theft charges stemming from an alleged scheme that defrauded numerous small and medium-sized businesses and commercial lenders.
Saul Shalev, 36, a dual U.S.-Israeli national, was charged in a nine-count indictment returned on Aug. 20.
Shalev was arrested in Barcelona, Spain, on Sept. 15 at the request of the United States.
He appeared Monday before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and was ordered detained.
According to court documents, Shalev holds U.S. and Israeli passports, lived in Brooklyn, New York, until approximately February 2019, and most recently resided in Dubai, United Arab Emirates.
Between approximately December 2019 and November 2022, Shalev allegedly defrauded more than 20 small and medium-sized businesses.
As part of the scheme, Shalev allegedly obtained information about commercial loans received by the businesses and offered them the opportunity to refinance the loans or to obtain additional financing.
Shalev, using stolen identities and making fraudulent representations, allegedly acted as a broker between businesses and potential lenders.
After obtaining new or additional financing for a business from a commercial lender, Shalev allegedly provided fraudulent payoff instructions to the business with respect to a prior loan, causing the business to send all or part of the loan proceeds to an account he controlled.
Shalev also allegedly fraudulently received a commission from the lender.
In December 2020, Shalev allegedly used a stolen identity and posed as a broker between an auto dealership in Ohio and a commercial lender in Connecticut, causing the lender to make a loan of $343,000 to the auto dealer and directing a payoff payment of $190,668.06 to an account he controlled while receiving a commission of $42,000.
In August 2021, Shalev allegedly used a stolen identity and posed as a broker between a healthcare provider in Indiana and a Connecticut lender, causing the lender to make a loan of $145,500 and directing payoff payments totaling $156,838.85 to an account he controlled while receiving a commission of $18,000.
In November 2022, Shalev allegedly posed as a broker between a provider of home improvement services in Michigan and a commercial lender in Pennsylvania, causing the lender to make a loan of $196,000 and instructing the business to “return” the proceeds to an account he controlled.
Shalev allegedly converted stolen funds into cryptocurrency.
The indictment charges Shalev with three counts of wire fraud, four counts of money laundering and two counts of aggravated identity theft.
Wire fraud and money laundering each carry a maximum term of imprisonment of 20 years on each count.
Aggravated identity theft carries a mandatory consecutive term of imprisonment of two years on each count.
The investigation is being conducted by the Federal Bureau of Investigation’s Connecticut Cyber Task Force, the Stamford Police Department and the Greenwich Police Department.
The Justice Department’s Office of International Affairs and Spanish authorities provided assistance in securing Shalev’s arrest and Jan. 23 extradition.
The case is being prosecuted by Assistant U.S. Attorney Edward Chang.
