FBI Charges New York Man in $1.7 Million Check Laundering Scheme
Tushal Rathod, a 44-year-old from Van Buren, NY, is facing serious charges after the FBI accused him of laundering counterfeit checks worth $1.7 million. The investigation started when his former partner—the mother of his six-year-old child—tipped off authorities. She’d noticed strange screenshots on his phone, including crypto transactions and chats in languages she didn’t recognize.
According to court documents filed by FBI agent Samuel Morgan, Rathod allegedly moved $1.2 million in Bitcoin through seven different bank accounts across six institutions. His ex-partner grew suspicious after he kept complaining about accounts being shut down. It’s unclear whether she knew the full extent of what was happening, but the screenshots were enough to raise red flags.
Wire Fraud, Money Laundering, and a Web of Bank Accounts
Rathod has been hit with multiple charges, including conspiracy to commit wire fraud and money laundering. The scheme reportedly ran from late 2021 through June of this year. Investigators pulled records from Google and Apple linked to his email addresses, including *[email protected]* and *[email protected]*, after securing court orders.
The FBI claims Rathod set up two companies—T3 Telecom, LLC in 2016 and TSV Telecom Constructions LLC in 2021—as fronts for the operation. Between April 2022 and this past June, he allegedly received over $1.7 million from fraudulent wire transfers and fake checks. Most of the money flowed through accounts tied to his telecom businesses.
BEC scams—business email compromises—are a common starting point for these schemes. Hackers get access to company emails, learn about upcoming payments, and then trick vendors into sending money to fake accounts. In Rathod’s case, authorities say he converted at least $1.2 million of the stolen funds into Bitcoin and sent it to external wallets.
Banks Caught On—But Not Before Millions Were Moved
Wells Fargo was one of the first to flag suspicious activity in 2022, notifying Rathod that unauthorized money had hit his account before closing it. Later, M&T Bank also reached out about questionable deposits. Rathod reportedly sent them a fake invoice to cover his tracks, but when he found out police were involved, he stopped responding.
The FBI says he didn’t work alone. His former girlfriend and even family members were allegedly recruited to open accounts and help move money. By mid-2024, another $1 million had been deposited into accounts controlled by them. Citibank managed to recover $800,000, but the rest vanished into the usual maze of layered transactions.
Agent Morgan noted that these schemes rely on making money nearly impossible to trace. “They bounce it through so many accounts that untangling it becomes a nightmare,” he said in the filing.
Victims and What’s Next
A Rhode Island law firm was among the first victims, losing $163,298 in 2022 after falling for an email impersonating a bank employee. A California credit union was hit even harder—scammers made off with roughly $8 million.
If convicted, Rathod could face up to 20 years in prison. But these cases are rarely simple. Proving who knew what—and when—is tough, especially when money gets funneled through so many hands. For now, the FBI seems confident they’ve got the right guy. Whether a jury agrees? That’s another story.
