Telecom company executives hit with $20M fraud charges in New York in first case of self-reporting
Senior personnel at a telecommunications company orchestrated a "calculated embezzlement scheme" to divert millions of dollars into their own pockets, federal prosecutors in New York charged in the first case of its kind that involved self-reporting by the company that allowed the corporation to avoid criminal charges.
Mohd Hafiz Lockman, Mohd Yuzaimi Yusof and Khanh Thuong Nguyen allegedly misappropriated more than $20 million from Telekom Malaysia's U.S. subsidiary using false statements, forged records, fictitious transactions and corporate and individual impersonations to deceive counterparties, suppliers, auditors and supervisors, the indictment said.
Lockman, 48, of Dublin, California, Yusof, 44, of Livermore, California, and Nguyen, 48, of Manassas, Virginia, are charged with wire fraud conspiracy, wire fraud and aggravated identity theft. All three were taken into custody last month and were released on bond. They have not yet entered pleas.
Their parent company, Telekom Malaysia Berhad, reported the alleged fraud to the U.S. attorney’s office in Manhattan last month and the company has been cooperating with the ongoing investigation, prosecutors said.
It's the first prosecution to result from a self-reporting program U.S. Attorney Jay Clayton announced earlier this year. Telekom Malaysia received a conditional declination of charges against the company provided it cooperates, pays restitution and agrees to report any future criminal conduct for the next three years.
"Today’s fraud charges come within weeks of receiving a self-report from the company,” Clayton said in a statement announcing the charges. “As alleged, Mohd Hafiz Lockman, Mohd Yuzaimi Yusof, and Khanh Thuong Nguyen perpetrated a sprawling fraud to steal over $20 million. The defendants deceived counterparties, suppliers, auditors, and their own supervisors. As a result of the fact that the conduct was reported to this Office and quickly investigated, the defendants will now be held to account for fraudulently lining their own pockets.”
According to the indictment, the defendants first schemed to sell Telekom Malaysia's broadband capacity without authorization and divert the proceeds to their own accounts. Then, they allegedly impersonated one of Telekom Malaysia's suppliers and intercepted payments the company made to that supplier.
They also allegedly impersonated employees and interns and captured their salaries. The fourth component of the fraud involved reimbursements for fabricated work expenses, officials said.
As one example, the indictment said the trio collaborated to request reimbursement for expenses incurred for a work trip to Las Vegas in December 2025. In fact, no such trip occurred. According to the indictment, when the parent company requested pictures from the trip, the defendants hastily organized a trip to Las Vegas and photographed scenes with Christmas trees to make it appear as though photographs had been taken in December.
