MN Woman, 70, Gets Prison, Must Pay $1.7M Restitution For Scams

MINNEAPOLIS — A Rush City, Minnesota woman was sentenced to 21 months in federal prison after she was convicted of taking part in multiple schemes that defrauded individuals throughout the nation, U.S. Attorney Andrew M. Luger announced Thursday.

Gayle Joyce Ferngren, 70, pleaded guilty in May to one count of mail fraud. After her prison sentence is complete, she must serve two years of supervised release, do 100 hours of community service, and pay $1.7 million in restitution.

According to authorities, from 2017 through April 2022, Ferngren helped launder proceeds of romance fraud scams and schemes to defraud Federal Pandemic Assistance Programs.

In total, Ferngren laundered at least $1.8 million in fraud proceeds, investigators said.

From June 2020 through December 2020, Ferngren received at least 68 debit cards containing approximately $1.3 million in fraudulent unemployment benefits from California and Nevada to which she was not entitled, according to authorities.

After receiving the fraudulent proceeds, Ferngren kept a portion for herself and transmitted most of the funds to other scheme participants, including to individuals located overseas, prosecutors said.

In addition, Ferngren participated in "romance scams" targeting people on dating websites, according to authorities.

The scams involved creating online profiles using fictitious or fake names, locations, images, and personas, allowing the scammers to cultivate relationships with prospective scam victims.

Ferngren received funds from romance fraud victims under false and fraudulent pretenses after other scheme participants induced the victims to send money to Ferngren, investigators said.