Executive Summary
Laws and Precedent
Five men have been indicted by a federal grand jury in Miami on 22 counts of wire fraud and money laundering, stemming from an alleged nationwide scheme that exploited payment processing systems to generate millions of dollars in fraudulent refunds. The indictment, returned Wednesday, September 24, 2025, details how the conspirators allegedly manipulated retail refund transactions across the United States, withdrawing and transferring funds before the fraud could be detected.
Indicted Individuals
The individuals charged are Michael Jerry Phanor, 35; John Ngotho, 33; William Lopes, 35; Armani Amado, 28; and Henry Nunez, 27. They face charges related to their alleged involvement in the sophisticated financial scheme.
Ngotho, a citizen of Kenya, and Phanor, a citizen of Haiti, could face deportation if convicted of the charges.
Scheme Details
According to the indictment and statements made in court, the defendants employed a “split-tender” method to initiate fraudulent refunds. They would purchase merchandise using two debit cards and then attempt to return the items.
During the return process, they would secure a refund to the first debit card while deliberately stalling the refund for the second card. This was achieved by presenting incorrect cards, entering wrong PINs, or feigning calls to financial institutions, keeping the transaction “open.” This manipulation allegedly triggered multiple refund signals, causing numerous credits to be issued to the first debit card.
While one conspirator conducted the staged return in-store, others monitored the associated bank account, rapidly withdrawing and transferring the fraudulently credited funds. After accumulating multiple credits, the defendants would terminate the return and take the merchandise to other store locations to repeat the process. This method reportedly allowed the group to generate tens of thousands of dollars in fraudulent credits from a single initial purchase.
Scope and Impact
The alleged scheme was carried out at dozens of retail locations across the country, including major cities such as Miami, Tampa, New York City, Chicago, Phoenix, and various locations in Southern California. Law enforcement has so far traced $1.5 million in fraudulent refund credits and is continuing to identify additional accounts and transactions linked to the operation.
The defendants allegedly flaunted their illicit gains on social media, showcasing luxury vehicles, private jet travel, and exclusive club experiences. They reportedly referred to themselves as the “Money Grows On Trees” collective.
Arrests and Ongoing Investigation
Phanor, Ngotho, Lopes, and Nunez were arrested on August 26 during the execution of search warrants at two luxury penthouse apartments in downtown Miami. The investigation is ongoing, with authorities working to uncover the full extent of the fraudulent activities and identify any additional individuals involved.
