“This is the government. Your money isn’t safe. Withdraw your savings, buy gold and we’ll hold it for safekeeping.” It sounds absurd written down. But on the phone, from someone who sounds official and urgent, it has cost older Americans millions. A federal sentencing this week shows how this scam works.

What happened

On November 4, 2026, a federal judge in Portland, Maine sentenced Prakashkumar Prajapati, 47, to nine years in prison and ordered him to pay $1,897,386 in restitution, according to the U.S. Attorney’s Office for the District of Maine. He had pleaded guilty in January 2026 to conspiracy to commit wire fraud.

According to prosecutors, the scheme worked like this:

• Victims got phone calls from people posing as government officials.
• The callers told them to withdraw cash and buy gold to turn over to the government for “safekeeping.”
• The callers then set up meetings where fake “government agents” collected the cash and gold in person.

Prajapati directed a co-defendant, Bharat Awasarmol, to pick up the cash and gold. FBI agents caught Awasarmol accepting a package from a victim in Maine, who had been told by someone posing as a Federal Trade Commission employee to hand over gold bars. Prosecutors say at least eight victims in Maine, New Hampshire, New York, New Jersey and Virginia lost a combined $1.9 million. Awasarmol pleaded guilty in December 2025 and is scheduled to be sentenced in January 2027.

The warning signs

Government-imposter scams follow a pattern. Watch for:

• A call out of the blue claiming to be from the FTC, FBI, Social Security, the IRS or your bank’s “fraud department”
• Urgency and fear, such as claims that your accounts are compromised or that you’re under investigation
• Secrecy, such as being told not to tell family or bank staff
• Instructions to withdraw cash, buy gold or gift cards, or move money to a “safe” account
• A courier or “agent” who comes to your home to pick up money or valuables

No government agency will ever ask you to buy gold, withdraw cash or hand money to a courier for safekeeping.

What you can do

• Hang up. Then call the agency or your bank yourself, using a number you already trust, such as the one on your card or statement.
• Talk to someone you trust before moving money. Scammers rely on secrecy.
• Add a trusted contact to your bank and brokerage accounts. Firms can reach that person if they suspect exploitation.
• Plan ahead. A durable power of attorney and an up-to-date estate plan put a trusted person in place to help manage finances if needed.
• Act fast if money is gone. Call your bank right away, file a report at ReportFraud.ftc.gov and IC3.gov, and call local police.
• Call the National Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).

When to get help

If a parent or loved one has lost money to a scam, talk to a lawyer about whether the bank, brokerage or payment service may share responsibility, and about steps to protect the rest of their assets. We discuss practical protections in our post on protecting an older relative from bank imposters.

Talk to Ginsburg Law Group

Ginsburg Law Group helps families with consumer fraud issues and with estate plans that protect aging parents, including powers of attorney and trusts. Contact us for a free review of your situation.

This post is for general information and isn’t legal advice. Reading it doesn’t create an attorney-client relationship.