Two men accused of $3.7m fake-company fraud arrested in California and Illinois on November 10

Creating businesses that exist only on paper can provide an appearance of legitimacy, but federal prosecutors allege that two men used fictitious companies and stolen identities to carry out a multimillion-dollar financial fraud scheme. The alleged operation involved setting up shell companies in other people's names, registering accounts with payment processors and initiating unauthorised withdrawals from third-party bank accounts.

Investigators say the scheme attempted to obtain approximately $3.7 million over five years.According to a November 10, 2026, announcement by the US Attorney's Office for the Southern District of New York, Paris Baker and Michael Sullivan were arrested in connection with the alleged operation. Baker was arrested in Thousand Oaks, California, while Sullivan was taken into custody in Calumet City, Illinois.