The FBI has charged 14 people in a massive and long running credit card and bank fraud scheme. From approximately 1999 to 2011, the defendants based in Manhattan and Queens, NY engaged in a conspiracy scheme involving the use of collusive merchants to charge credit cards for goods and services that were never actually provided.
The defendants also engaged in a conspiracy to defraud financial institutions by obtaining mortgages, loans, lines of credit, and opening bank accounts using fictitious or stolen identities. For example, 2 defendants obtained both a mortgage and a home equity loan, totaling over $500,000, using a fictitious name, social security number, and other fictitious personal information. Also, in November 2010, 2 defendants stole an identity and used that real information to obtain a bank loan and credit cards in that person’s name.
Several banks were also defrauded through check kiting schemes. During the course of the scheme, 1 defendant discussed his ability to purchase bank routing numbers from a bank employee and another discussed his ability to produce counterfeit bank checks to conduct a check kiting scheme.