Five indicted in Cedar Rapids on federal charges in elder fraud case

CEDAR RAPIDS - Five people were indicted last week in federal court for their roles in a fraud scheme where elderly people were falsely told a relative was in jail and needed bail money wired to them.   

Carlos Rodriguez, 37, of Galena, Ill, is charged with 24 counts of wire fraud; Michael Marcov, 25, of Hazel Green, Wisc., is charged with 39 counts of wire fraud; Stephanie Marcov, 27, also of Hazel Green, is charged with 40 counts of wire fraud; and Cody Richey, 25, of Dubuque, is charged with 11 counts of wire fraud. All charges were filed in U.S. District Court.

The other co-defendant, Shawn Vaassen, 21, of Dubuque, was previously charged with one count each of wire fraud and unlawful possession of a weapon under the National Firearms Act, related to the same scheme, court records show.

The five defendants are accused of defrauding people throughout the United States from December 2015 through September 2016, the indictment shows.

According to the indictment, the suspects would call a person and tell them a relative was in jail and then ask them to wire bail money through Western Union or Money Gram.

Another member of the group would often participate in the phone call, claiming to be the victim's relative, and falsely confirming that he or she was in jail and needed the funds to secure release.

The money was then picked up at the wire service offices in Iowa, Wisconsin and Illinois by leaders of the group or 'runners,” who would then hand off the money to others, the indictment shows. The runners would receive between $20 and $75 for each wire transfer received.     

Court documents show participants in the fraud also sent wire transfers to locations in the Dominican Republic, using money obtained from the victims. Other money obtained through the scheme was deposited into various bank accounts.

The indictment includes 117 of the wire transfers sent in the scheme. The amounts vary from $725 to $2,500. 

Rodriguez, Michael Marcov and Stephanie Marcov have pleaded not guilty and are set for trial April 10. Richey hasn't yet been arraigned.

Rodriguez, Michael Marcov, Vaassen and Richey all remain in jail pending trial. Stephanie Marcov remains on release with special conditions.

Vaassen is set to plead guilty Feb. 27.    

This case is part of the Elder Justice Initiative of the U.S. Department of Justice. In June 2016, the United States Attorney's Office for the Northern District of Iowa was selected as one of 10 districts in the nation to form an Elder Justice Task Force. The task force was assembled to foster a collaborative working relationship among all levels of government officials, advocacy groups for the elderly and the disabled, and others charged with the care and protection for these vulnerable groups. 

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