The United States has arrested five fugitives wanted by German authorities in connection with a massive international fraud network accused of defrauding thousands of victims of more than €300 million and establishing a shadow financial system across Germany.
The arrests, made in California, followed a formal request from the Federal Republic of Germany under existing extradition treaties. The fugitives — four U.S. citizens and one Canadian national — were taken into custody by the U.S. Marshals Service and made their initial appearances in federal court on Wednesday in the Central District of California.
Those arrested include Medhat Mourid, of Woodland Hills; Andrew Garroni, of Los Angeles; Guy Mizrachi, of Agoura Hills; Ardeshir Akhavan, of Irvine; and Tunde Benak, a Canadian national also residing in Irvine.
According to a statement from the U.S. Department of Justice, German prosecutors allege that the group was part of an elaborate network involving German payment service processors. The network allegedly created millions of recurring, fraudulent debit and credit card transactions tied to fictitious online merchants. The false charges were typically kept below €50 to avoid drawing suspicion from victims, investigators said.
The charges were linked to websites that appeared legitimate but were only accessible through direct links or specific URLs, making them difficult for authorities or victims to trace. German officials allege that the operation relied on collusion with executives and compliance officers at German payment service processors, allowing the fraudulent transactions to continue unchecked for years.
The scheme, according to Germany’s allegations, not only defrauded victims but also effectively created a “shadow financial system” within the country, operating outside normal regulatory oversight.
The arrests were coordinated as part of a wider international effort spanning several countries, including Germany, Italy, Luxembourg, Spain, Cyprus, the Netherlands, the United Kingdom, Canada, and Singapore.
Acting Assistant Attorney General Matthew Galeotti of the Justice Department’s Criminal Division, First Assistant U.S. Attorney Bill Essayli of the Central District of California, and Director Gadyaces S. Serralta of the U.S. Marshals Service jointly announced the arrests.
The Office of International Affairs (OIA) within the Justice Department, which serves as the central authority for U.S. criminal matters involving foreign governments, worked closely with German prosecutors to coordinate the arrests and ensure compliance with U.S. legal standards for extradition.
OIA also facilitated cross-border coordination meetings and collaborated directly with the German public prosecutor’s office to secure the legal documentation necessary for the arrests.
The U.S. Marshals Service in the Central District of California executed the operations in tandem with law enforcement actions overseas. All five suspects are being held pending extradition to Germany, where they face multiple charges under German law related to large-scale financial fraud.
DOJ
