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A North Jersey man was arrested and charged this week in connection with an alleged technical support scam that defrauded more than 7,000 victims – consisting mostly of small business owners and the elderly – out of more than $13 million.

United States Attorney for New Jersey Philip Sellinger announced Aug. 31 that Manoj Yadav, 40, of Clifton, was being charged with a count of conspiracy to commit wire fraud.

According to prosecutors, Yadav and his conspirators – many of whom were in India – fraudulently represented themselves as a tech support company affiliated with a major U.S. business and accounting software firm that developed and sold a widely used accounting program.

Prosecutors allege that the group operated under a slew of fraudulent business names, such as Phebs Software Services LLC, Phebs Software Services, PN Bookkeeping Services, Quickbooks Tech Assist and more.

“The conspirators would contact victims under the guise of fixing victims’ technical issues with the accounting software. After receiving tech support from the conspirators under these fraudulent pretenses, the victims would either be charged exorbitant fees or additional subscription fees,” according to case documents and court statements released by prosecutors. “These ‘services’ were all fraudulent: They would not cost any additional money for customers who contacted the actual software company, and the software company never authorized Yadav or his conspirators to act on its behalf or charge any fees.”

The U.S. Attorney’s Office alleges that Yadav personally participated by charging the victims for sham tech support services and funneling millions of dollars of their money to his conspirators, which was fraudulently obtained through the Phebs Software Services LLC he himself formed. Prosecutors say that entity did business as both Phebs Software Services and Quickbooks Accounting.

“Yadav also used these entity names to falsely hold himself out to banks and victim customers as an accounting company legitimately affiliated with the software company. He did this to prevent charge backs, Better Business Bureau complaints, and the closure of bank accounts,” according to case documents and court statements. “Yadav sent his conspirators over $13 million in funds obtained from victims and would routinely keep approximately 17% when he wired funds to the conspirators.”

“The defendant and his conspirators are alleged to have misled numerous victims into thinking that they were a legitimate technology support company affiliated with a major software company,” said Sellinger in a press release. “After claiming to provide technical support for issues involving the software company’s popular accounting software, they allegedly charged the victims exorbitant fees for purported support services that were not authorized by the software company.”

“The amount he’s accused of stealing from his victims and the number of victims seem shocking; however, we are seeing an incredible increase in all types of tech support scams,” said FBI Special Agent in Charge James Dennehy. “The fraudsters are pretty savvy in how they con money out of people, even those of us who think we’re smart enough to not fall for it. If you think you’re a victim, please reach out to the FBI.”

Yadav was slated to make his first appearance Thursday in Newark federal court. An attorney was not immediately known.

The count he is charged with carries a maximum penalty of 20 years in prison and a fine of $250,000 or twice the gross profit or loss caused by the offense – whichever is greatest.

See also:

• 2 men admit roles in $35M investment fraud scheme
• Murphy signs law to shield veterans from scammers
• NJ men admit to trafficking fake Cisco devices worth millions