Federal prosecutors in New York have charged three men in an alleged scheme that used artificial intelligence to impersonate corporate executives and attorneys at major law firms, leading companies to transfer more than $129 million, according to an indictment unsealed by the U.S. Attorney’s Office for the Southern District of New York. The Associated Press also reported the charges. The allegations have not been proven, and all three defendants are presumed innocent unless and until proven guilty.
Key Highlights
- The U.S. Attorney’s Office for the Southern District of New York announced the charges Thursday, Nov. 5, CyberScoop reported.
- Prosecutors say the group targeted thousands of companies over more than 18 months.
- All three men were arrested abroad between June and September. U.S. extradition requests are pending, CBS and CyberScoop reported.
- No pleas or trial dates were reported.
The Defendants
The defendants are Jacob Soall, 41, Sharon Hazan, 54, and Guy Sheetrit, 42, according to the AP. CyberScoop reported that Soall was arrested in Spain on June 17, Hazan in Spain on Aug. 5 and Sheetrit in the United Kingdom on Sept. 7.
The Justice Department identified Soall as being from Marbella, Spain, and the United Kingdom; Hazan as being from Israel; and Sheetrit as being from Israel and the United Arab Emirates. The department also said Hazan was convicted in the Southern District of New York in 2008 of conspiracy to commit bank fraud.
How the Scheme Allegedly Worked
According to the indictment, as reported by the AP and CBS, the group often targeted accounting staff with an email that appeared to come from a company’s CEO, asking for help with a confidential financial transaction. A phone or video call followed in which AI allegedly mimicked the CEO’s voice and sometimes image.
Employees were then told to contact an attorney at a major law firm. Prosecutors say the group impersonated those lawyers too. Soall allegedly posed mainly as U.K. attorneys and used a script titled “Lawyer Call.”
The impostor lawyers allegedly directed employees to wire large sums to accounts around the world. The money was allegedly converted to cryptocurrency to hide its origin, according to the AP. CyberScoop said the scheme ran from July 2024 to February 2026.
Reported Victims and Losses
The Justice Department said the alleged scheme stole more than $129 million overall. Among the losses listed in its announcement were $11,578,474 at a U.K. financial technology company, $5,242,747 at a Florida pet food company, $4,829,580 at a Missouri hospital system, $4,639,918 at a Massachusetts mutual fund company, $2,968,497 at a California hospital system and $2,684,580 at a Rhode Island bank. These are examples identified by prosecutors, not a complete list of alleged victims.
The AP noted that it was not clear how many companies actually lost money, only that thousands were targeted, or how much has been recovered.
The Charges
The indictment lists seven counts against each defendant: conspiracy to commit wire fraud, wire fraud, two counts of aggravated identity theft, conspiracy to commit money laundering and two money-laundering counts. The Justice Department lists maximum statutory penalties of 20 years for each wire-fraud and money-laundering count and two years for each aggravated identity-theft count. These are statutory maximums, not predictions of the sentences; any sentence would be determined by the judge.
Lawyers for Soall and Sheetrit did not immediately respond to the AP’s requests for comment. CyberScoop said Sheetrit’s attorneys deny any involvement. It was unclear whether Hazan has an attorney.
What Officials Said
U.S. Attorney Jamie McDonald said “the public should recognize that there are some who seek to use this emerging technology to pursue criminal goals,” CyberScoop reported. FBI Assistant Director in Charge James C. Barnacle Jr. said, “As criminals continue to weaponize emerging technologies, the FBI remains committed to rapidly adapting our capabilities,” according to the AP.
What Companies Can Take From It
Ynet reported that employees made the transfers themselves and that no bank accounts were hacked. That points to verification of payment requests as a key defense, though the reports reviewed did not include official guidance. For related coverage of AI policy and technology, see our report on the AI data center backlash.
What to Watch Next
Key questions are whether the extraditions are approved, whether the men enter pleas and whether more defendants are charged. CyberScoop noted that prosecutors said funds went to co-conspirators’ accounts in several countries.
Watch: Coverage of the Charges
Video: “The CEO’s voice on the call was AI, prosecutors say. Three men are charged over $129 million.” (YouTube).
Sources
- U.S. Department of Justice: Three Foreign Nationals Arrested and Charged in $129 Million Scheme
- PBS NewsHour (AP): 3 charged in $129 million AI scheme targeting thousands of companies
- CBS News:3 allegedly used AI to steal some $129 million from companies
- CyberScoop: Authorities accuse trio of using AI deepfakes to defraud $129M from businesses
- Ynet: Fake CEOs, stolen millions: two Israelis charged in $129 million AI fraud scheme