Ten Indicted in $200 Million International
Credit Card Fraud Conspiracy
NEWARK, NJ—Ten individuals who allegedly participated in one of the
largest
credit card fraud schemes ever charged by the Justice Department now face a
25-count indictment charging additional crimes, New Jersey U.S. Attorney Paul J.
Fishman announced.
Nine of the defendants charged in the indictment unsealed today were previously
charged by complaint in February 2013 in connection with the scheme, which
allegedly caused more than $200 million in losses. A 10th defendant, Amar Singh,
is charged for the first time in this indictment. The complaint charged 18
defendants with bank fraud conspiracy, alleging their participation in a scheme
to fabricate more than 7,000 false identities to obtain tens of thousands of
credit cards. Many of those defendants have since pleaded guilty to related
charges. The indictment announced today adds wire fraud charges against seven of
the defendants with pending cases.
According to documents filed in this case and statements made in court:
The scheme involved a three-step process. The defendants would make up a false
identity by creating fraudulent identification documents and a fraudulent credit
profile with the major credit bureaus. Then they would pump up the credit of the
false identity by providing false information about that identity’s
creditworthiness to those credit bureaus. Finally, they borrowed or spent as
much as they could, based on the phony credit history, but did not repay the
debts—causing more than $200 million in confirmed losses to businesses and
financial institutions.
The scope of the criminal fraud enterprise required the conspirators to
construct an elaborate network of false identities. Across the country, the
conspirators maintained more than 1,800 “drop addresses,” including houses,
apartments, and post office boxes, which they used as the mailing addresses for
the false identities.
The conspiracy to commit bank fraud charge and each of the wire fraud charges
carry a maximum potential penalty of 30 years in prison and a $1 million fine.
(Source
fbi.gov)
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