October 9, 2009
-
News: Feds Bust NY Fraud Ring
U.S. Secret Service teamed up with the Brooklyn, New York authorities to detect and bust a large credit card, identity, and other financial fraud ring. According to Jerry Schmetterer of the King's County District Attorney's Office, the exact number of victims is not yet known, but it is expected to be in the thousands. The 18 month investigation lead to the arrest of 13 individuals who defrauded credit card victims out of over $10,000 a day over a two year time period. The ring allegedly used stolen credit card numbers they purchased off a website based in Russia and the Ukraine to manufacture counterfeit cards. The cards were given to other members of the rings who used them to purchase a variety of merchandise which was later sold on the internet.
The thieves also used the stolen credit card numbers to make large purchases as well. Their scam included an elaborate plan to illegally purchase automobiles with which they staged auto thefts and accidents in order to collect insurance money. Quality interior parts were removed from automobiles and replaced with broken parts in order to claim the automobiles were broken into and vandalized in order to defraud the insurance company. Authorities were also able to seize a Mercedes Benz, Bentley, and Land Rover which were illegally obtained. Other purchases that were made with the stolen credit cards include power tools, flat screen TVs, and other household appliances from the local Lowe's and Home Depot stores. The higher priced appliances and home improvement items were installed at various homes throughout New York City and Philadelphia in order to inflate values for refinancing of home mortgages.
The thirteen thieves have been charged with 263 criminal acts including enterprise corruption, identity theft, credit card theft, real estate fraud, and conspiracy to commit automobile insurance fraud. They are facing 25 years or more in prison. Authorities say additional arrests are expected.