Charlotte, February 20, 2026
A recent sentencing in Charlotte highlights the importance of vigilance and integrity in the local business landscape. The case involved a sophisticated tech support fraud scheme that defrauded thousands across the U.S. of over $7 million. The operation, linked to Capstone Technologies, utilized deceptive tactics to exploit victims, illustrating the need for ethical conduct and robust measures to protect legitimate businesses in Charlotte.
Charlotte, NC – A recent federal sentencing has brought into focus the critical importance of integrity and vigilance within Charlotte’s dynamic business landscape. The case underscores the challenges faced in maintaining a secure and trustworthy environment for entrepreneurs and consumers alike in an increasingly interconnected world.
The city of Charlotte prides itself on fostering a vibrant ecosystem of innovation and entrepreneurial spirit. However, the recent sentencing of a Charlotte man involved in a sophisticated, international tech support fraud scheme serves as a stark reminder that vigilance and ethical conduct are paramount to sustaining this growth. This complex operation, which defrauded thousands of victims across the United States of more than $7 million, highlights the need for constant awareness in our digital economy and robust measures to protect legitimate Charlotte NC business enterprises from the taint of illicit activities.
The success of any economic hub, especially one as flourishing as Charlotte, hinges on trust – trust between businesses and their customers, and trust in the regulatory frameworks designed to ensure fair play. The unfolding details of this particular fraud scheme offer valuable lessons for North Carolina entrepreneurs, underscoring the necessity of due diligence and the severe consequences for those who choose to exploit the system.
The Anatomy of a Sophisticated Nationwide Scam
The fraudulent scheme leveraged malicious internet pop-up “ads” that abruptly appeared on victims’ computer screens, freezing them and displaying deceptive messages claiming their devices were infected with a virus. These alarming pop-ups instructed victims to call a specific toll-free number for immediate technical support.
Upon calling these numbers, victims were connected to call centers, primarily based in India, where operators masqueraded as technicians from legitimate companies like Microsoft. These individuals then falsely diagnosed non-existent computer problems or exaggerated minor issues, convincing victims to purchase unnecessary services or pay exorbitant fees for “repairs” that were either bogus or never performed. The deceptive tactics ultimately coerced thousands of individuals, many of whom were elderly, into paying hundreds or even thousands of dollars.
A Local Connection with Global Reach: Capstone Technologies
Central to this elaborate fraud was Capstone Technologies, a company headquartered right here in Charlotte. Prosecutors indicated that Capstone utilized these malicious pop-ups and the overseas call centers to execute the technical support fraud, defrauding thousands of victims throughout the United States. The company operated under various aliases to facilitate its illicit activities, including Authenza Solutions LLC, MS-Squad Technologies, MS-Squad.com, MS Infotech, United Technologies, and Reventus Technologies.
Nachiket Banwari, a Charlotte resident, was one of the key figures in this operation. His role involved obtaining payment-processing services on behalf of Capstone, which allowed the conspirators to accept payments from their victims. He was also instrumental in laundering the illicit proceeds, transferring funds domestically and internationally to bank accounts located in India. For his participation, Banwari personally received three percent of Capstone’s revenue from the scheme, totaling $222,334.
The Network Behind the Deception: Key Players and Their Roles
The international conspiracy involved several individuals, each playing a distinct role in the fraudulent enterprise. In addition to Nachiket Banwari, 36, of Charlotte, two other men were also convicted and sentenced for their involvement.
Hunter G. Mello, 42, of Sandwich, Massachusetts, served as a crucial broker, connecting Capstone to the India-based call centers. He facilitated the transfer of millions of dollars to overseas bank accounts and ultimately profited approximately $2 million from the scheme. Richard Paul Nolan, 60, of Colorado Springs, Colorado, was responsible for creating and operating TrackDrive, the platform used to route calls to the fraudulent call centers. He also ensured that the pop-ups effectively locked victims’ computers and used his financial accounts to transfer money to overseas accounts. Nolan profited approximately $2 million from the scheme, with the total loss associated with his involvement estimated at $19 million.
For their roles in the conspiracy to commit wire fraud, Nachiket Banwari was sentenced to 30 months in prison, followed by three years of supervised release. Hunter G. Mello received a sentence of 40 months in prison and three years of supervised release. Richard Paul Nolan was sentenced to 24 months in prison and three years of supervised release. Additionally, the court ordered the three defendants to collectively forfeit $3,711,000 in proceeds obtained from their illicit activities.
Protecting Charlotte’s Business Integrity
Such fraud schemes can cast a shadow over the legitimate efforts of Charlotte small business owners and erode public trust in technology services. The swift and decisive action by federal law enforcement, including the FBI Charlotte Field Office, in investigating and prosecuting these individuals, is vital for maintaining a fair and secure operating environment. This ensures that genuine North Carolina entrepreneurs can thrive without their hard work and reputation being undermined by criminal enterprises.
The emphasis on robust enforcement helps to uphold the ethical standards that are fundamental to sustainable economic growth. It sends a clear message that exploiting consumers and abusing technological advancements for illicit gains will not be tolerated, thereby protecting the integrity of our market and fostering a more reliable climate for investment and innovation.
Lessons for the Digital Economy
The case serves as a powerful reminder of the persistent threats in the digital realm and the need for ongoing vigilance from both consumers and businesses. For individuals, exercising caution with unsolicited tech support calls and pop-up warnings is crucial. For businesses, particularly those in the tech sector, upholding rigorous ethical standards and implementing strong internal controls are essential to prevent their operations from being co-opted or exploited for fraudulent purposes.
Maintaining a strong framework of legal accountability, coupled with proactive educational initiatives, is key to safeguarding our digital infrastructure and protecting the vulnerable. By promoting a culture of awareness and ethical responsibility, Charlotte can continue to foster an environment where legitimate entrepreneurial innovation flourishes, unhindered by the shadows of digital crime.
This incident underscores that while innovation drives prosperity, it must be accompanied by unwavering integrity and a commitment to protecting consumers. Supporting ethical local businesses and staying informed about digital safety practices are essential contributions to Charlotte’s ongoing economic vitality.
Frequently Asked Questions
What was the nature of the fraud scheme?
The fraud scheme involved malicious internet pop-up “ads” that froze victims’ computers and displayed fake virus warnings. Victims were then directed to call a technical support line, which connected them to India-based call centers. Operators there falsely claimed to be Microsoft technicians and convinced victims to pay for unnecessary services or to fix non-existent computer issues.
Who was the Charlotte man sentenced in this scheme?
Nachiket Banwari, 36, of Charlotte, was sentenced for his involvement in the scheme.
What was Nachiket Banwari’s role in the fraud?
Nachiket Banwari worked for Capstone Technologies, a Charlotte-based company. He was responsible for obtaining payment-processing services for Capstone to accept victim payments and laundered the proceeds domestically and internationally to bank accounts in India. He received three percent of Capstone’s revenue from the scheme, totaling $222,334.
How much money was defrauded from victims nationwide?
The international scheme defrauded thousands of victims throughout the United States of more than $7 million.
What were the sentences for those involved?
Nachiket Banwari was sentenced to 30 months in prison and three years of supervised release. Hunter G. Mello received 40 months in prison and three years of supervised release. Richard Paul Nolan was sentenced to 24 months in prison and three years of supervised release.
What was the total forfeiture amount ordered by the court?
The three defendants were ordered to collectively forfeit $3,711,000 in proceeds from the scheme.
Which Charlotte-based company was tied to the scam?
Capstone Technologies, headquartered in Charlotte, was the company tied to the scam, using malicious pop-ups and an India-based call center.
Key Features of the Tech Support Fraud Scheme
| Feature | Description | Geographic Scope |
|---|---|---|
| Primary Method | Malicious internet pop-up “ads” freezing screens with fake virus warnings. | Nationwide |
| Deception Tactic | Operators in India-based call centers posing as Microsoft technicians. | Nationwide |
| Victim Impact | Thousands of victims, many elderly, defrauded of hundreds to thousands of dollars. | Nationwide |
| Total Fraudulent Gains | More than $7 million. | Nationwide |
| Charlotte Connection | Capstone Technologies, a Charlotte-based company, used the pop-ups and call centers. | Charlotte, NC |
| Charlotte Defendant’s Role | Nachiket Banwari obtained payment-processing services and laundered proceeds for Capstone. | Charlotte, NC |
| Collective Forfeiture Ordered | $3,711,000. | Nationwide |
| Aliases Used by Capstone | Authenza Solutions LLC, MS-Squad Technologies, MS-Squad.com, MS Infotech, United Technologies, Reventus Technologies. | Nationwide |
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Author: HERE Charlotte
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