Former Member of U.S. Air Force Sentenced for Identity Theft

A Chicago federal judge has sentenced former U.S. Air Force member Ronnie Allen II to four years in prison for identity theft.  Allen, a 28 year old from Greensboro, North Carolina, used his position in the Air Force to illegally steal an Air Force personnel roster.  The roster contained the private identifying information of approximately 1400 Air Force members stationed in Idaho at Mountain Home Air Force Base.  The personal identifiers contained on the illegally obtained roster included the names, Social Security numbers and dates of birth of the Air Force personnel.

According to prosecutors, Allen distributed the private information contained on the stolen personnel roster with the hopes of profiting financially from the information's dissemination.  The information was then used to file tax returns and fraudulently open financial accounts using the names and other personal identifiers of the Air Force personnel on the list.  It is unclear how many Air Force members were affected by the dissemination of their personal identifiers.

Identity thieves often open credit cards and obtain loans using the names and other personal identifiers of their victims.  The criminals then make purchases using the credit cards and loans.  The charges are never paid, thereby ruining the victims' credit history while the criminals profit without any consequence unless caught.

Forged tax returns are a slightly different version of identity theft and has become more prevalent in recent years.  Instead of opening new financial accounts, the identity thief completes a fake tax return in the name of his or her victim.  This is usually done as early in the year as possible before the victim files his or her real return.  The taxes on the forged tax return are calculated in such a way as to result in a refund, which is then received by the identity thief instead of the victim.  The IRS has been cracking down on this type of identity theft over the past few years, including issuing pin numbers to persons who have been victims in the past to prevent the crime from reoccurring.

While four years seems like a light sentence to me (the damage to the victims' credit histories will last longer than that), it is good to see an identity thief like Allen being forced to spend at least some time behind bars.

What the Smurf?! Dr. Smurf guilty of identity theft!

A Lithuanian hacker who used the screen name "Dr. Smurf" has been convicted of identity theft and sentenced to five years in prison.  Tadas Petrauskus, 23, of Brick, New Jersey, sold passwords to an unidentified western Pennsylvania person that could have potentially given the buyer access to the financial accounts of approximately 10,000 people.  

Petrauskus was caught at John F. Kennedy International Airport after flying in from Belgium in the possession of a laptop containing many credit card numbers in its memory.  Dr. Smurf was sentenced by U.S. District Judge Nora Barry Fischer.  Hopefully his five year sentence will seem like a Smurfing long time!

A new low

Can you believe this?  A total of six identity thieves plead guilty recently to stealing the identity of more than 50 residents of Maryland, which resulted in the theft of more than $200,000.  The scheme involved defrauding banks in Maryland and five other states and the withdrawal of money from people's personal bank accounts.

Here's the shocking part.  The identity thieves followed funeral processions in order to rob cars parked at cemetaries of credit cards, driver's licenses and social security cards.  They aslo broke into cars parked outside churches, gyms, day care centers and parks.  How brazen and low down is that?  Imagine going to a loved one's funeral, already the victim of grief, only to be victimized again by unscrupulous identity thieves?!
The identity thieves used the information from the stolen cards to get information on personal accounts from banks. Prosecutors said one of the suspects worked at a bank and helped his friends get checks made out to the men in the scheme. The men would then visits the victims' banks and impersonate the people on the cards, sometimes putting on wigs, prosecutors said.

Sickening.

An interesting article about an identity theft ring based out of a federal prison, straight from http://7thspace.com/headlines/370211/inmate_sentenced_in_ohio_for_running_identity_theft_ring_from_prison.html: 

"The man who led an identity-theft ring that ran up a quarter-million dollars worth of charges from inside a federal prison was sentenced to more than 14 years in prison, Steven M Dettelbach, United States Attorney for the Northern District of Ohio, announced today. “The defendant thought he found a way to occupy his time in prison,” Dettelbach said. “With this prosecution and this sentence, he’ll have lots more time to learn to follow the rules.” Dimorio McDowell, age 34, of Atlanta, Georgia, previously pled guilty to aggravated identity theft and conspiracy to commit wire fraud and bank fraud. McDowell was an inmate at Fort Dix Federal Correctional Institution at the time of the scheme, which took place between August 2009 and April 2010.

United States District Judge Donald Nugent ordered McDowell’s 174-month sentence on this case begin in 2014, when he completes the current sentence that resulted in his incarceration at Fort Dix. McDowell was the ringleader who obtained personal information on people who had credit card accounts at various retailers, including Best Buy, Home Depot, JC. Penney, Lowe’s, Macy’s, Nordstrom’s, Saks Fifth Avenue, Sears and Staples, according to court documents. McDowell contacted the retailers and impersonated the true account holders, store employees, or corporate fraud investigators.

He used information about the account holders, such as name, address, or Social Security number during those calls to obtain additional information about them and adding co-conspirators names as authorized users of the accounts, thus taking over the accounts, according to court documents. After taking over the accounts, adding additional users to the accounts and opening new accounts, McDowell communicated with his co-conspirators, all of whom lived in the Cleveland area. McDowell continued to run his scheme from prison even after he was charged and after he pled guilty. He also posed as a deputy United States Marshal over the telephone and attempted to have prisoners moved, according to information presented during the sentencing hearing.

Overall, the ring purchased more than $254,000 worth of merchandise as part of their scheme, according to court documents. Also charged in the case are: Andre Reese, 37; Jeffery McClain, 39; Kevin McBride, 34; Michael Sailes, 51; Edwin Peavy, 52; Daniel Ashford, 37; James L Wiggins, 47, and Jay Williams, 27, all of Cleveland, Ohio. All have entered guilty plea to charges against them. This prosecution is the result of cooperation from a number of law enforcement agencies who identified the defendants, gathered the evidence and prepared the case for prosecution.

The investigative team included the Federal Bureau of Investigation’s Cleveland Division and Trenton Resident Agency, the United States Bureau of Prisons, the Postal Inspection Service, Bath Township Police Department, Stow Police Department, Mentor Police Department and other state and local law enforcement agencies. The case was prosecuted by Assistant United States Attorney Matthew B Kall. “This case is a stark reminder about the need to protect yourself from identity theft and fraud,” Dettelbach said. “I want to thank the FBI, the Bureau of Prisons and all our partners who made prosecuting this case possible.”

Another Career Involving an Identity Thief

As I have reported in the past, the careers that have spawned identity thieves has been many and diverse, from bankers to radio hosts, from nannies to car dealers.  Well, here's a new one - postal worker.

A former mail carrier has been sentenced to serve 180 days at the Middlesex County Adult Correction Center for taking an ATM card from the mail and using it to withdraw $7,533 from an individual’s account, Middlesex County Prosecutor Bruce J. Kaplan announced Tuesday.
Jennifer James, 44, of Howard Street, New Brunswick, also was placed on probation for five years and was told to repay the victim’s bank, which covered the individual’s losses.

James was sentenced in New Brunswick by Superior Court Judge Frederick P. DeVesa on February 22, after she pleaded guilty on Nov. 17, to a count of identity theft.
The plea agreement was reached following negotiations with Middlesex County Assistant Prosecutor Manuel Sameiro.
James was arrested and charged following an investigation by New Brunswick Police Officer William Contreras, who determined the defendant took the ATM card from one of the residents on her route.
The investigation further determined James used the card to make cash withdrawals at various ATMs between April 2, and April 7, 2009.

James, who had worked as a mail carrier for 15 years, subsequently was dismissed from her job.

West Virginian sentenced to two years for identity theft

Tammy Aleshire, a West Virginian was sentenced last Friday by U.S. District Judge John T. Copenhaver, Jr. to a mandatory sentence of two years in prison for aggravated identity theft.  She was also oreded to pay restitution to the victims of her identity theft scheme.

Aleshire had previously pled guilty in October 2009 to the aggravated identity theft charge.
Aleshire learned the name and social security number of another individual when applying for a credit card at K-mart in St. Albans, West Virginia. The U.S. Postal Inspection Service and the Putnam County Sheriff's Department investigate Aleshire and learned she had used that person's identity to open credit card accounts.
Subsequently, Aleshire used the victims' name and social security number to obtain multiple credit card accounts which she used over 50 times to purchase merchandise totaling approximately $16,000.
Assistant United States Attorney Erik S. Goes handled the prosecution.This case was prosecuted as a part of the United States Attorney's identity theft initiative.

PA identity theft ring member sentenced

From the EthiopianReview.com -

Richard S. Hartunian, United States Attorney for the Northern District of New York, John F. Pikus, Special Agent in Charge of the Federal Bureau of Investigation (FBI) Albany Division and Steven Heider, Chief of the Town of Colonie Police Department, announced today that JOHN W. WINDLE, 44, of Philadelphia, PA was sentenced by U.S. District Judge Gary L. Sharpe to 70 months of imprisonment for his involvement in an identity theft ring.


On September 6, 2007, WINDLE pled guilty to four felony offenses: one count of identification document fraud, one count of wire fraud, and two counts of aggravated identity theft, in violation of 18 U.S.C. Title 18, United States Code, Sections 1028(a)(5), 1343, and 1028A, respectively. WINDLE was sentenced to 46 months for the identification document fraud and wire fraud and 24 months for the aggravated identity theft counts, three years of supervised release, forfeiture, and full restitution to the victims of his crimes.

According to court documents, WINDLE admitted that he was a team leader in a so-called “flip, bite, and write” identity theft scheme in which ring members targeted elderly women shopping in grocery stores. Teams led by WINDLE traveled to locations where retail stores, usually one that sold groceries, were located in close proximity to stores where electronics could be purchased, such as Best Buy, Circuit City, or Sears. Typically, a member of WINDLE’s team distracted the elderly female victim in the store (“the flip”), while WINDLE stole the woman’s credit cards (“the bite”). WINDLE then went to his vehicle nearby and, using a laptop and ID printer, made a false identification document (ID) in the victim’s name with a picture of one of the ring members traveling with him. The false identification documents WINDLE created included state driver’s licenses and United States Armed Forces identification cards. Using the stolen credit cards and fake ID, WINDLE and his team members then purchased expensive electronics, miscellaneous merchandise, and gift cards, signing the victim’s name to the credit card receipts (“the write”). WINDLE sold some of the electronics to KHURRAM FARID, who in turn sold them on the internet, while other proceeds were divided among the team members.

WINDLE admitted that he and ring member ANN M. GRICE carried out the identity theft scheme in the capital district region in July 2004, victimizing elderly women and businesses in Latham, Brunswick, Clifton Park, and Wilton, New York. WINDLE and GRICE were arrested by the New York State Police in Wappingers Falls, N.Y., after leaving this area and victimizing another elderly woman in a supermarket in Poughkeepsie, N.Y. WINDLE and GRICE were indicted by a federal grand jury in this District on February 16, 2007.* GRICE remains at large.

On October 12, 2006, NELSON SLAUGHTER, another team leader in the identity theft ring, pled guilty before Judge Sharpe to felony offenses related to his participation in the “flip, bite, and write” scheme and was sentenced to 73 months imprisonment on May 7, 2008. WINDLE and SLAUGHTER operated the scheme, which they developed with others, starting in at least 2001, and committed acts throughout the United States, including New York, California, Massachusetts, Connecticut, Pennsylvania, Ohio, Indiana, Virginia, and North Carolina. Additionally, on August 20, 2009, KHURRAM FARID was indicted by a federal grand jury in the Eastern District of Pennsylvania on charges of conspiracy and transportation of stolen property for receiving and reselling on the internet the stolen goods procured by WINDLE and SLAUGHTER.

The criminal investigation was conducted by the FBI, the Town of Colonie Police Department, the Social Security Administration Office of Inspector General, the Defense Criminal Investigative Service, and the New York State Police, and was prosecuted by Trial Attorney Nicola J. Mrazek of the Fraud Section of the Criminal Division of the U.S. Department of Justice and Assistant United States Attorney Tina Sciocchetti of the United States Attorney’s Office for the Northern District of New York.

(Source: FBI)

Mortgage assistant guilty of identity theft

From WCCO.com:

A former mortgage assistant is awaiting sentencing after he pleaded guilty Friday to stealing information on the job and using it to commit identity theft, according to the U.S. Attorney's Office.


In his plea agreement, 32-year-old Jason Alan Tauer of Robbinsdale admitted to stealing the files of 93 people who'd made loan applications at Ameriquest Mortgage, where he worked from March 15 to April 29, 2005. He also admitted to getting information from stolen mail and things he took from gym lockers, according to the report.
The Attorney's Office said Tauer then used the information to make fake identification documents and checks, which he used to get cash, services and other items. In one example given in the news release, Tauer obtained a U.S. Bank credit card in another person's name and withdrew cash from ATMs throughout Minnesota, sticking the victim with a $30,529.63 bill.
During a Dec. 4, 2007 search of Tauer's home, investigators found 93 files stolen from Ameriquest Mortgage as well as other documents containing information on 208 people, according to the release.
The charges in the plea agreement include two counts of bank fraud, one count of device fraud and three counts of aggravated identity theft. Though Tauer has yet to be sentenced, he could be sent to prison for more than 70 years.

Bernanke identity thief gets 17 years in the pokey

Remember a few months ago when Federal Reserve Chairman's Ben Bernanke's wife had her identity stolen.  Well, if you don't, read my prior posts on the subject here - http://fcralawyer.blogspot.com/search/label/Bernanke

Lernando Zanders, a ringleader of the $1.5 million identity-theft ring that victimized Ms. Bernanke (among many others) was sentenced last week to 17 years in prison and ordered to pay back $1.4 million.  I guess his accomplices will only have to reimburse $100,000. 


According to authorities, Zanders paid professional office employees and pickpockets to steal the personal identifying information of his victims, which he and his accomplices then used to steal cash from the victims' bank accounts.

One of those pickpockets snatched Bernanke's wife's purse at a D.C. Starbucks.  The criminal ring then used her driver's license and checkbook to cash $900 in checks from the Bernanke's bank account.

The conspiracy was brought down, in part, by a receptionist at a Washington doctor's office who had sold patients' information to the ringleaders, court documents said. When authorities traced the stolen identities back to the receptionist, she recorded phone calls with co-conspirators and provided other information that led to their arrests and successful prosecution.

Springfield, Missouri man may get 50 years in prison for identity theft

Brian Ray, a 32 year old Springfield, Missouri man, could spend 50 years in federal prison for passing bogus bills and identity theft.
The U.S. Attorney's Office says Ray plead guilty to charges in two separate federal indictments.
Ray admits that, between April and November 2009, he stole checking account and personal information from several victims totaling more than $108,000, produced several fake ID's and passed $13,000 in fake money.
Ray could face up to 50 years in prison and $750,000 in fines.

Does using another person's identity when you get married constitute a menage a trois?

Aracelis Cherico, a Manhattan, New York medical assistant has pled guilty to stealing a stranger's identity and using it to get married in the other woman's name.

As a result of Cherico's marriage in her victim's name, the victim's application for a marriage license was denied.  Cherico admitted using the name and personal identifiers of Sara Benitez for years, including when Cherico wed in 1992.  Cherico also filed tax returns in Benitez's name to get more than $2,600 in refunds.

Cherico is expected to be sentenced to 60 days in prison and to help clear Benitez's name.  Seems to me that that's a pretty weak sentence and, from my experience, even the identity thief's help is not enough to undo the havoc caused on an identity theft victim's credit report and financial life.

Fake NFL player convicted of identity theft

Amadeus Harlan a.k.a. Johnny Harlan allegedly posed as a member of the NFL's Denver Broncos.  Now he'll trade his imaginary Broncos' uniform for real prison garb.  Harlan was convicted Thursday of identity theft and aggravated motor vehicle theft in Jefferson County, Colorado. 

According to prosecutors, the forty year old Harlan repeatedly posed as a professional football player for the purpose of gaining the trust of his victims, then stealing their identities to purchase expensive cars and obtain loans.  Harlan was also convicted of writing phony payroll checks to employees of his bogus business. 

Harlan is scheduled for sentencing on February 26, 2010 and faces up to 48 years in prison.

Ringleader behind theft of Bernanke's wife's identity sentenced

Waldorf, Maryland's Clyde Austin Gray, Jr. was sentenced on Friday to 11 years in prison and to repay more than $1.4 million in restitution. Gray previously pled guilty to masterminding a nationwide identity theft ring, whose victims included the wife of Federal Reserve Chairman Ben Bernanke.

Identity thief gets 11 years

A California Federal Court sentenced Garden Grove, California man to eleven years in prison for masterminding two identity theft schemes that allowed him to steal personal information from hundreds of consumers.  He then stole their identities, using the consumers' identities to fraudulently obtain over $1.5 million from credit card accounts and home equity lines of credit.

In additon to his sentencing, Martin Quoc Pham was also ordered to pay restitution of nearly $538,000.  While Pham used the stolen identities to access legitimate home equity lines of credit with Chase Bank, I representing a plaintiff in a similar case involving Bank of America.  While the identity thief initially begins the consumers' nightmare, it is the banks that keep the problem going.  In my case, Bank of America made error after error, completely ignoring my client's proof of his innocence.

In another scheme, Pham used fraud credit cards to buy merchandise from Wal-Mart and Sam's Club stores. Pham and his cohorts were able to obtain over $300,000 in merchandise fraudulently.  Pham's three co-conspirators already pled guilty to the scheme.

Father and Son Guilty of Identity Theft

Like father, like son?  A Kansas judge sentenced a Kansas man and his son to prison for providing fake ids to workers at a Desoto, Kansas manufacturer.  The father, Benito M. Dominguez, was sentenced to four and a half years in prison while his son, Jose E. Dominguez, was sentenced to almost two years.

The father and son crime duo possessed the names and Social Security numbers of over 400 people, which they used for bogus SSN cards and resident alien documents.  Both pled guilty to single counts of aggravated identity theft and making false identification documents. 

Upcoming sentencing for illegal immigrant linked to thousands of fake ids

A Mexican citizen in Witchita, Kansas is scheduled for sentencing regarding one count of identity theft.  The 62 year old Jorge Alvarez Rivera, a.k.a. Daniel Salas, is scheduled for sentencing on January 11, 2010 for making a false claim of U.S. citizenship and identity theft, charges that he pleaded guilty to last month.

However, Rivera is also linked to thousands of U.S. birth certificates produced for illegal immigrants.  In fact, more than a decade ago, Rivera was found with more than 830 Kansas birth certificates hidden in the trunk of his vehicle after he was involved in an auto accident.  However, he was never prosecuted for this crime. 

Fortunately, he is finally being taken off the streets.

Insurance claims clerk guilty of identity theft

Shanell Bowser of Baltimore, Maryland, a claims clerk for a medical insurance adjuster, has been sentenced to five years in prison for identity theft.  She was also ordered to pay more than $200,000 in restitution to her many victims. 

Bowser used her job to gain access to the names, Social Security numbers and other personal identifiers of her victims.  Bowser used this information to open over 125 fraudulent accounts and victimize at least 89 people over a three year period.  Bowser purchased clothes and electronics, withdrew cash from ATMs and even used the stolen identities to obtain phone service.

I personally think employers that collect the personal identifiers of their customers should be held to higher standard in protecting that information.  That includes stricter standards governing their hiring practices.  Whether that would have protected the 89 people victimized by Bowser, I don't know.  But I would think she could have been stopped sooner than the three years that she was able to perpetuate her crime.

There should also be more severe criminal penalties for employees that steal, use or sell personal identifying information collected through their employment.

Identity thief ordered to pay $3.2 million in restitution

A New York identity thief was ordered to pay $3.2 million in restitution.  Yomi Jagunna will also serve 141 months in federal prison after pleading guilty to one count of conspiracy to commit identity theft.

Why so much for one mere count of identity theft, you might ask?  Because Jagunna had an account with a commercial database in the name of a collection agency that he then used to sell Social Security numbers to co-conspirators for $30 a piece.  Yep, just $30.  His co-conspirators then used the SSNs to make fraudulent withdrawals from the victims' bank accounts, netting no telling how much thanks to Jagunna.

Jagunna is one of eight charged in the identity theft conspiracy.  Six others have also pled guilty.  The last is awaiting trial.

Pharmacist pleads guilty to identity theft

Recently I have reported on a person who cared for the elderly but also stole their identities.  I have also reported on a employee who stole the identities of her employer and her employer's daughter.  I even reported on a radio personality who got caught stealing identities (among other things). 

The latest you ask - a pharmacist.

Patrick Slifka, a pharmacist at a Cresco, Iowa's Medicap Pharmacy, has pled guilty to aggravated identity theft as well as wire fraud. 

Basically, Slifka assumed the identity of a physician by using the physician's name and DEA number to submit fraudulent claims to Wellmark Blue Cross/Blue Shield for medications.  Slifka now faces a minimum of 2 years in prison, a maximum of 20 years, $250,000 in fines and up to three years of supervised probation.

Hope those meds were worth it

I guess no one is safe from identity theft

Who's the next victim of identity theft ... President Obama?  As most of you probably know by now, Ben Bernanke, the Federal Reserve Chairman, has become a victim of identity theft.  The latest is that the identity thief responsible has pled guilty. 

Leonardo Darnell Zanders of Dolton, Illinois, entered a guilty plea after several witnesses had already testified in his trial, including his co-defendant Darrell Earl Price, who testified that Zanders had given him checks in the name of Anna and Ben Bernanke, which he then used as part of the overall identity theft scheme.

The Virginia Federal Court is scheduled to sentence Zanders on December 18.