Two Elkhart residents are facing multiple felony charges after a Hobart woman was allegedly targeted in a fraud scheme involving callers impersonating a federal drug enforcement agent and demanding cash payments.
Court documents say Jose Segura, 21, and Zaidy Arellano, 23, took part in a scheme in which suspects posed as agents with the U.S. Drug Enforcement Administration (DEA) and collected thousands of dollars in cash from a Hobart resident under false pretenses.
The investigation began after police received a fraud report on or around January 12, 2026, in the 7000 block of Dunlin Court. According to investigators, the victim received a phone call on January 9, 2026, from an unknown man claiming to be “Paul Watson,” a DEA agent. The caller provided a badge number to appear credible.
Court records state the caller told the victim her nephew had been arrested for possessing a large quantity of cocaine and said she could secure his release for $8,500. The caller allegedly claimed the nephew did not know about the drugs, saying a cab driver had placed them in his luggage. The victim was instructed to withdraw cash from her bank and told agents would come to her home to collect the money.
The victim reported withdrawing $8,500 and later handing the cash, sealed in an envelope, to a Hispanic male who arrived at her front door around 5:00 p.m. She said she remained on the phone with the caller during the exchange, and the man provided a name she had been told to expect.
On January 12, 2026, the victim received another call from the same number requesting an additional $8,500, allegedly for attorney fees. At that point, she became suspicious and contacted police. Investigators with the Hobart Police Department coordinated with the victim to make it appear the transaction would continue, allowing officers to set up a controlled operation to apprehend the suspects.
During the investigation, officers monitored a phone call that lasted approximately two and a half hours. Court documents say the caller conducted “status checks” about every 20 minutes to ensure the victim remained compliant. Police also observed a black 2018 Mercedes SUV with Indiana plates slowly driving through the cul-de-sac before leaving and later returning.
Investigators reported the caller told the victim the individuals would arrive within five minutes and gave instructions on how to hand over the money. When the Mercedes returned and parked in front of the home, officers saw a male walk up the driveway toward the front door. Police activated emergency lights and took the male into custody. A female passenger in the vehicle was also detained.
Court records say officers then entered the residence, identified themselves over the phone, and ended the call with the alleged scammer.
Police identified the male suspect as Jose Segura. According to court documents, Segura waived his Miranda rights and admitted he knew the victim was being scammed. He told investigators he was there to collect money as part of the fraud and said he had participated in similar pickups on three previous occasions, though he claimed he did not collect the initial $8,500 on January 9.
The female suspect, Zaidy Arellano, was advised of her Miranda rights in Spanish, according to court records. She initially claimed she believed she was picking up packages but later admitted she knew the activity was illegal. Arellano reportedly told investigators she had been involved since about September 2025, estimating she participated in four to five pickups. She also described typical amounts collected and how the cash was stored until larger sums were accumulated and transported elsewhere.
Both suspects are currently being held at the Lake County Jail.
Charges Filed January 14, 2026
Jose Segura, 21
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Fraud – loss between $750 and $50,000 (Attempt), Level 6 Felony
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Theft – value of property between $750 and $50,000 (Attempt), Level 6 Felony
Zaidy Arellano, 23
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Fraud – loss between $750 and $50,000, Level 6 Felony
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Theft – value of property between $750 and $50,000, Level 6 Felony
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Fraud – loss between $750 and $50,000 (Attempt), Level 6 Felony
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Theft – value of property between $750 and $50,000 (Attempt), Level 6 Felony
Prosecutor Issues Fraud Alert
Following the arrests, Lake County Prosecutor Bernard A. Carter issued a public fraud alert warning residents—especially seniors—about phone scams involving individuals impersonating law enforcement or federal agents.
The alert states scammers often claim a loved one has been arrested, create urgency and fear, demand secrecy, insist on cash-only payments, and may send someone directly to a victim’s home to collect money. Prosecutors emphasized that legitimate law enforcement agencies never request cash, send collectors to private residences, or threaten people for trying to verify information.
Residents who receive similar calls are urged to hang up immediately, avoid providing money or personal details, contact a trusted family member, and call their local police department directly. Anyone who believes they have been targeted is encouraged to report the incident to law enforcement without delay.