June 5, 2009
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News: Restaurant Servers Scam Diners
A ring of restaurant servers stole diners credit card information costing more than 50 different card companies $736,393 in fraudulent charges. Alexandria, VA prosecutors have arrested and charged eight individuals in the scam which involved employees at three of Washington DC's restaurants; Clyde's, M&S Grill, and 701. The investigation began when Citigroup suspected criminal activities after victims began disputing the fraudulent charges. Citigroup then notified the Secret Service. Federal agents noticed a pattern of initial credit card charges at the three restaurants just prior to the start of the fraudulent charges and began contacting the restaurants. With the help of the 701 owner, Ashok Bajaj, agents were able to apprehend the criminals. Bajaj played a vital role by agreeing to work with agents by continuing to employ one of the suspects, Lavelle Payne, during the investigation. Surveillance showed that servers at the three restaurants were skimming customer credit cards on a little black box and then swiping their own cards thereby transferring the customers' information on to them. The servers sold the illegal cards to three other individuals who used them to perform the illegal purchases most of which were carried out in northern VA.
Among those servers accused in the credit card fraud are Jamaal Snowden, Lavelle Payne, Simone Carrie Diane Folk, Vasha Monique Carter, and Shannon Eileen McLaughlin. Additionally, the three men who devised the credit card scam and alleged ringleaders are Joseph A. Bush III, Aaron D. Gilbert, and Erick V. Burton. Charges include bank fraud, aggravated identity theft, and conspiracy to commit access device fraud. All of the defendants have pleaded guilty to the charges and face up to five years in prison. All are expected to receive sentences within the next few months.
The three restaurant operations have cooperated with authorities and say this is an isolated case and that they have not experienced any other problems. Both Clyde's and 701 Restaurant spokespersons say their customer's credit cards will be fully protected. M&S Grille who housed three of the five criminal servers, as well as the attorneys for the three ringleaders, failed to comment. As a consumer who travels a great deal and frequents many restaurants, I commend 701 owner, Ashok Bajaj, for his role in the apprehension of these criminals and interest in protecting 701's patrons.