• by Ray Schultz , Columnist, January 3, 2018

The man arrested for being part of the Nigerian Prince email fraud may have been a dupe himself.

Michael Neu, age 67, is facing 269 counts of wire fraud and money laundering charges. He is being held in the St. Tammany Parish Jail, and a  $30,000 bond has been set.

He does not look like a criminal mastermind. But he could be the key to unraveling an international scheme of a type that has bedeviled law enforcement.

It began when Neu met one “Maria Mendez” through Facebook, and was persuaded, as part of a “romance scheme,” to begin transferring money to her in Nigeria from victims of email fraud, the Slidell, Louisiana Police Dept. alleges.

Mendez, a fake profile, was the source of thousands of fraudulent emails a day -- including some for the Nigerian Prince scheme, and others for IRS reshipping, advance pay and other scams, police say.

Neu, who lives in Slidell, would forward money to “Mendez” via Western Union and keep a small part for himself, but Western Union cut him off, forcing him to use other services, and banks also closed up to ten accounts opened by him because they suspected fraud.

Neu handled at least $250,000 worth of fraudulent transfers, but the amount could increase as the investigation, which also involves the U.S. Secret Service, unfolds. He processed three to four transactions a week.

The probe began in May 2016 when a complaint came in from the Dodge City, Kansas Police Dept. that a victim in that town had wired money to Neu, as per instructions. 

Overseas scammers use people like Neu as a middleman in an effort to “conceal their true identities, and to launder the money,” the police continue.

Initially, detectives gave Neu “the benefit of the doubt,” and warned him that his actions were illegal. But he continued because he needed the money, police say.

It’s not known whether Neu is cooperating, or whether he can help authorities shutter this worldwide scam. He is entitled to his day in court.