September 16, 2010
-
News: Feds Crack Immigrant Fraud Ring
A major credit card fraud and identity theft ring operating in New Jersey and consisting of mostly Koreans has been shut down. The Feds arrested 53 individuals who allegedly participated in a credit card fraud and identity scheme to ultimately defraud the U.S. and its citizens. The group consisting of mostly Korean immigrants purchased Social Security Numbers from Asian immigrants working in Guam, American Samoa and Saipan. The scammers then sold them to Korean immigrants in the U.S. for use to obtain drivers licenses from a number of U.S. states including California, Pennsylvania, Illinois, Nevada, and New York. After receiving the illegal driver's licenses, the immigrants used them to obtain credit card accounts and maxing them out. They also used the illegal driver's license to obtain credit to purchase autos and other luxury items.
One of the defendants, Kang-Hyuk Choi, was already in custody awaiting trial for murdering three other individuals. It is believed that the defendant murdered three individuals related to similar activities of credit card fraud and identity theft. Detectives investigating the murders believed that the fraud extended beyond this one case and was more widespread. At that point, they expanded the investigation to include the FBI, the U.S. Attorney's Office and local law enforcement agencies. Authorities charged Choi with additional charges in the current case with identity and credit card fraud.
According to FBI Special Agent in Charge Michael B. Ward, the credit card fraud and identity theft scheme was sophisticated and the cost substantial. Investigators have not yet discovered why the social security numbers, which all began with 586, had been accepted by the driver's license bureaus because they were part of a special limited series that is used exclusively with laborers in U.S. territories. Investigators are looking into the issue further. The alleged ringleader is Sang-Hyun Park. It is believed that he marketed the illegal documents in local Korean language newspapers.