Press Release  Two Texas Individuals Arrested And Arraigned In Middlesex Superior Court For Defrauding A Waltham Nonprofit

BOSTON — Following an investigation by AG Campbell’s Criminal Bureau, two Texas individuals have been arrested and arraigned in connection with a scheme to defraud a Waltham-based nonprofit organization.  

The arrests took place last month in Texas through a coordinated effort between the Attorney General’s Office, Massachusetts State Police, the United States Secret Service, United States Parole, the Texas Hopkins County District Attorney, and Federal Task Force Officials from the Colleyville, Texas Police Department.  

Paul Webb of Terrell, Texas, and Montrail Brooks of DeSoto, Texas were arrested in Texas last month and arraigned yesterday in Middlesex Superior Court. Webb was arraigned on the charges of Money Laundering and Receiving Stolen Property. Brooks was arraigned on the charges of Money Laundering and two counts of Receiving Stolen Property. Both Webb and Brooks were indicted by a Middlesex Grand Jury last September for money laundering and receiving stolen property worth more than $1,200.  

During October and November of 2021, Webb and Brooks took part in a scheme to defraud a Waltham-based nonprofit organization affiliated with a local university. Webb and Brooks received a total of $126,000 into various shell companies and then laundered the funds to hide their unlawful origin. 

The scheme was accomplished through a “business email compromise,” a form of cybercrime that exploits email vulnerabilities in an effort to fraudulently re-direct business and other funds by posing as a legitimate business partner or contractor.  

In this case, the nonprofit organization received messages from a known email address asking for the disbursement of specific funding amounts mentioned in previous, legitimate emails. While the emails requesting these wire transfers were fraudulent, they successfully mimicked signature details of the previous, legitimate emails and the perpetrators went so far as to draft and submit invoices for the amounts being stolen. 

The AG’s Financial Investigations Division was able to successfully follow the stolen funds through the many bank accounts designed to obscure the fraud and identify Webb and Brooks as perpetrators.  

This case is being prosecuted by Assistant Attorney General Chris O’Brien of AG Campbell’s Insurance and Unemployment Fraud Division with support from Financial Investigator Gillian Daly, Victim Witness Advocate Megan Murphy, Director of the AG’s Digital Evidence Lab Chris Kelly, and Massachusetts State Police assigned to the Attorney General’s Office. 

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