Federal prosecutors say an international money laundering scheme tied to a hacked email account has led to a guilty plea in Buffalo.
Houssam El-Atat, 44, of Montreal, pleaded guilty to conspiracy to commit money laundering after being extradited from Spain, according to the U.S. Attorney’s Office for the Western District of New York.
Prosecutors said the case began in early 2021, when a Buffalo resident was communicating by email with a marine sales company about buying a boat. Those messages included pricing, specifications, and payment details.
In March, the buyer received an email that appeared to come from the seller and included wiring instructions for payment. Believing the instructions were legitimate, the buyer wired $295,373.75 to a Bank of America account.
Authorities said the payment never reached the seller. The buyer later learned his email account had been compromised and the wiring instructions were fraudulent.
An FBI investigation determined the bank account that received the funds belonged to an individual identified as A.Z., who told agents he did not know the money came from fraud. A.Z. said someone claimed the transfer was repayment of a debt owed to his late father.
At that person’s request, A.Z. sent $180,200 of the funds to an account at a Canadian bank. Investigators said the money was then quickly moved through several apparent shell companies before being distributed to El-Atat.
El-Atat pleaded guilty before U.S. District Judge Lawrence J. Vilardo to money laundering conspiracy, a charge that carries a maximum penalty of 20 years in prison and a $500,000 fine.
The case was investigated by the FBI with assistance from the Sûreté du Québec Provincial Police. Sentencing is scheduled for April 29 before Judge Vilardo.
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