DOJ Files Charges In $200 Million Bank And Credit Card Fraud Scheme

On Monday, FBI agents arrested 13 people for alleged participation in a “massive international fraud enterprise” that spanned eight countries and 28 states and defrauded financial institutions and credit card companies out of $200 million.  Federal prosecutors stated that the scheme was “highly sophisticated” and involved 7,000 false identities, 80 sham companies, fraudulent identification documents, and doctored credit reports.

Federal prosecutors stated that the scheme was “highly sophisticated” and involved 7,000 false identities, 80 sham companies, fraudulent identification documents, and doctored credit reports.

The criminal complaint, which was filed in the U.S. District Court for the District of New Jersey, described the scheme as a three step process.  First, the defendants would “make up” a false identity by creating fraudulent identification documents and a fraudulent credit profile with the major credit bureaus.  Second, the defendants would “pump up” the credit of the false identity by providing the credit bureaus with false information regarding the identity’s creditworthiness.  Third, once the false identity had excellent credit, the defendants would “run up” large loans which were never repaid.

Federal prosecutors claim that the case is one of the largest ever brought by the DOJ and that over $200 million in losses have been confirmed.  According to the criminal complaint, the defendants spent the money on luxury automobiles, electronics, spa treatments, high-end clothing, and millions of dollars in gold.

A copy of the criminal complaint can be found here.