App State Hit By Scammers, Most Of The Money Is Recovered

Appalachian State University is getting back more than $1.5 million allegedly stolen through an e-mail scam.

The case involves money that was supposed to go to companies building App State's new health sciences building. The U.S. Attorney's office in Charlotte says alleged fraudsters used email to pose as legitimate contractors. They got almost $2 million before the scam was discovered.

The perpetrators used bank wire transfers to launder the money through various companies.

University officials contacted the FBI. An investigation found more than $1.5 million in multiple accounts, and the FBI filed warrants to seize the money before the scammers could take it.

“In this case, the FBI located and seized the stolen funds even before criminal investigative targets had been identified or a criminal case had been filed,” U.S. Attorney R. Andrew Murray says. “Under these circumstances, civil forfeiture is the only area of law that enables law enforcement to swiftly obtain warrants to secure stolen funds, and to prevent the perpetrators of fraud from accessing them.”

The money was recovered through a federal civil court forfeiture proceeding and has been returned to the university.