Creating businesses that exist only on paper can provide an appearance of legitimacy, but federal prosecutors allege that two men used fictitious companies and stolen identities to carry out a multimillion-dollar financial fraud scheme. The alleged operation involved setting up shell companies in other people's names, registering accounts with payment processors and initiating unauthorised withdrawals from third-party bank accounts. Investigators say the scheme attempted to obtain approximately $3.7 million over five years.According to a November 10, 2026, announcement by the US Attorney's Office for the Southern District of New York, Paris Baker and Michael Sullivan were arrested in connection with the alleged operation. Baker was arrested in Thousand Oaks, California, while Sullivan was taken into custody in Calumet City, Illinois. Both men face federal charges involving wire fraud, access device fraud, money laundering and aggravated identity theft.How the alleged fraudulent payment scheme workedAccording to the criminal complaint, Baker, Sullivan and others participated in the scheme between approximately 2019 and 2024. They allegedly established fictitious business entities using the identities of people whose personal information had been stolen. The individuals behind the operation then created accounts for these companies with at least three payment processors. One of the processors was based in Rockland County, New York.Using these accounts, the defendants allegedly initiated unauthorised debits from other people's bank accounts.
Two men accused of $3.7m fake-company fraud arrested in California and Illinois on November 10
Arrests have been made in a high-profile fraud case involving Paris Baker and Michael Sullivan. They are accused of orchestrating a complicated scheme involving fake companies to illegally withdraw funds from victims' bank accounts. This fraudulent operation allegedly netted around $1.3 million while aspiring to seize another $3.7 million over five years.
In brief
Creating businesses that exist only on paper can provide an appearance of legitimacy, but federal prosecutors allege that two men used fictitious companies and stolen identities to carry out a multimillion-dollar financial fraud scheme. The alleged operation involved setting up shell companies in other people's names, registering accounts with payment processors and initiating unauthorised withdrawals from third-party bank accounts.
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