Georgia Man Sentenced to 10 Years for Laundering $4.5 Million from Fraud Schemes

Georgia Man Sentenced to 10 Years for Laundering $4.5 Million from Fraud Schemes

Malachi Mullings has been sentenced to 10 years in federal prison for laundering over $4.5 million obtained from romance fraud scams and business email compromise schemes, including a conspiracy that defrauded a health care benefit program.

“Motivated by greed, Mullings and his co-conspirators brazenly stole millions of dollars from companies and elderly victims located throughout the United States,” said U.S. Attorney Ryan K. Buchanan. “This case demonstrates our office’s commitment to collaborate closely with our law enforcement partners to bring to justice those who perpetrate these frauds, including at the expense of elderly citizens especially vulnerable to these schemes.”

“Malachi Mullings used various schemes to fraudulently obtain money to feed his greed, and in some cases took advantage of the elderly to do it,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents are skilled financial investigators who can unravel complex financial transactions and money laundering schemes criminals use to hide their ill-gotten money. We will also continue pursuing criminals who commit financial fraud on government programs, financial systems, and the elderly.”

From at least 2019 through July 2021, Mullings opened 20 bank accounts in the name of a sham company, The Mullings Group LLC. He used those accounts to launder millions of dollars generated by business email compromise schemes targeting a health care benefit program and private companies, and romance fraud scams targeting numerous individuals, including several elderly victims. Mullings and his co-conspirators conducted financial transactions to conceal the fraud proceeds and used some of the funds to purchase luxury items such as expensive cars and jewelry. In one case, Mullings laundered $310,000 diverted from a state Medicaid program intended for a hospital. In another case, Mullings obtained $260,000 from a romance scam on an elderly victim, which he used to purchase a Ferrari.

Malachi Mullings, 31, of Sandy Springs, Georgia, was sentenced by U.S. District Judge Michael L. Brown to 10 years in prison, followed by three years of supervised release. He was also ordered to pay restitution to the victims. Mullings pleaded guilty to one count of conspiracy to commit money laundering and seven counts of various money laundering offenses on January 17, 2023.

The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force, which focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors.