Federal sentences handed down in Charlotte-linked tech support fraud scheme that extracted millions from victims

Three defendants sentenced in case tied to Charlotte-based Capstone Technologies

Federal courts have imposed prison sentences on three men connected to an international “tech support” fraud operation that used malicious computer pop-ups and India-based call centers to extract payments from victims across the United States. The scheme has been tied to Capstone Technologies LLC, a company described in court records as headquartered in Charlotte.

On Tuesday, Feb. 17, 2026, the sentences included 30 years in prison for Nachiket Banwari of Charlotte, 40 months for Hunter Mello of Massachusetts, and 24 months for Richard Nolan of Colorado. Each defendant was also ordered to serve three years of supervised release. Collectively, the three were ordered to pay $3,711,000.

How the fraud worked: pop-ups, fake affiliations, and remote “repairs”

In the scheme described in court filings, victims encountered pop-up warnings that appeared on their computers and were designed to make the device seem compromised or unusable. The pop-ups displayed a phone number for “technical support.” Calls to that number were routed to call centers in India, where operators allegedly posed as Microsoft employees and persuaded victims to pay for computer repairs addressing problems that did not exist.

Investigators described losses ranging from hundreds to thousands of dollars per victim. Federal allegations tied the activity to a group of related entities and aliases used in the operation, including names linked to Capstone Technologies and other brands referenced in court records.

• Pop-ups were used to create urgency by freezing or interrupting computer use.
• Victims were directed to call a number presented as technical support.
• Call-center operators allegedly misrepresented their affiliation and sold unnecessary services.
• Payments were collected through common consumer channels, including cards and bank transactions.

Scale of alleged victimization and financial scope

Court records describe thousands of victims and losses exceeding $7 million connected to the Charlotte-based company and its related operations. In separate filings associated with the wider investigation, the government has cited call records indicating the potential for very large numbers of affected individuals, requiring alternative methods of victim notification due to the volume of possible victims.

Earlier sentencing in related Capstone-linked conspiracy

The Feb. 17, 2026 sentencings follow earlier federal prosecutions tied to similar tactics. In 2019, a North Carolina man pleaded guilty in a related conspiracy involving fraudulent pop-up ads, an India-based call center, and claims that victims—many of them seniors—were persuaded to pay for unnecessary services.

Tech support fraud cases typically rely on urgency-driven warnings and impersonation to obtain payments for fictitious or unnecessary services.

What consumers are advised to watch for

Law-enforcement descriptions of these schemes emphasize that legitimate technology companies do not use unsolicited pop-ups to lock devices and demand immediate calls for help. Consumers who see such warnings are generally advised to avoid calling displayed numbers, refrain from granting remote access, and seek help through verified support channels.