Colorado woman accused of scamming millions of dollars through fake online identity
A Castle Rock woman who allegedly collected $3.4 million from people she contacted online through her fake identity attempted to hide her earnings in cryptocurrency and overseas accounts after being warned about her illegal activity, according to authorities.
Lori Ann Kimball, 52, faces two dozen federal charges following a grand jury indictment announced July 24.
Without providing specifics about the nature of her actions, prosecutor's with the United States Attorney's Office for the District of Colorado referred to Kimball's fraud as "pig butchering." It's a type of scam which federal authorities have recently warned consumers about. The fraudsters shower their victims with attention prior to pinching them for funds.
"This scam is named in reference to the practice of fattening a pig before slaughter," the Federal Deposit Insurance Corporation (FDIC) stated in a press release. "It is a type of confidence and investment fraud in which the victim is gradually lured into making increasing monetary contributions, generally in the form of cryptocurrency, to a seemingly sound investment before the scammer disappears with the contributed monies."
Kimball, per prosecutors, established relationships and trust with her victims over months, in some cases. She then devised a "narrative" which she told her victims to induce donations.
The indictment did not offer details about Kimball's narrative. But the $3.4 million she received from January 2023 to February 2025 was sent by checks, wire transfers and virtual currency.
"Kimball was warned by third parties, including law enforcement, that she was engaged in illegal financial transactions but continued to engage in such transactions," the indictment stated.
In fact, Kimball then tried to hide her money in several ways, according to prosecutors. Most of it was deposited in cryptocurrency accounts and eventually to cryptocurrency wallets held by other people living overseas. Kimball also registered a business in Colorado to create bank accounts she planned to use.
Prosecutors claim Kimball provided false information to banks and cryptocurrency exchanges in order to hide her activity. She told one cryptocurrency exchange she was a bitcoin dealer, per the indictment.
At one point, Kimball operated at least 20 bank accounts and at least 9 cryptocurrency accounts, according to the indictment.
Kimball is charged with one count of conspiracy to commit money laundering and 23 counts of money laundering. Her case was investigated by the Internal Revenue Service. She is scheduled to appear in federal court in Denver for an arraignment Wednesday. A trial is slated for December.
