Used Cards Re-encoded with Stolen Credit/Debit Card Numbers to Buy Merchandise at Army and Air Force Exchange Service Stores and Elsewhere
Greenbelt, Maryland - On June 1, 2017, a federal jury found James Stewart, age 27, of District Heights, Maryland guilty of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. The jury also found Vincent Grant, age 28, of Laurel, Maryland guilty of conspiracy to commit access device fraud and aggravated identity theft.
The convictions were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office (DCIS); and Special Agent in Charge Jeffrey Thorpe of the DCIS - Cyber Field Office.
According to evidence presented to the jury, from July 2014 to May 2015 the defendants used Bitcoin, a form of digital currency, to purchase stolen credit and debit card numbers of individuals and businesses from foreign internet websites. The defendants selected and purchased stolen credit and debit card numbers of individuals and businesses holding federal credit union accounts, and those with billing addresses in or near Maryland. They bought magnetic strip card-encoding devices and software to re-encode credit, debit, and other cards with the stolen credit and debit card numbers. The defendants then used the cards they fraudulently re-encoded to buy merchandise, including gift cards, electronic items, and luxury goods, from Army and Air Force Exchange Service stores on U.S. military bases, also known as PX stores, and other locations in Maryland and elsewhere. They used the merchandise themselves or resold the merchandise to individuals they knew.
Coconspirators Derrick Shelton and Quentin Stewart previously pled guilty to conspiracy to commit wire fraud and aggravated identity theft. Coconspirator Jamal Moody pled guilty to conspiracy to commit access device fraud and aggravated identity theft.
Moody, Shelton, James Stewart, and Grant were specialists, and Quentin Stewart was a former sergeant, all in the District of Columbia Army National Guard.
Shelton, James Stewart, and Quentin Stewart face a maximum sentence of 20 years in prison for conspiring to commit wire fraud, and wire fraud. Grant and Moody face a maximum sentence of seven and half years in prison for conspiring to commit access device fraud. All five defendants also face a mandatory minimum of two years in prison for aggravated identity theft, consecutive to any other sentence imposed.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Acting United States Attorney Stephen M. Schenning commended the DCIS for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Bryan E. Foreman and Thomas P. Windom; Special Assistant U.S. Attorney Gustav William Eyler, of the U.S. Justice Department, Criminal Division - Fraud Section; and Trial Attorney Jessee Alexander-Hoeppner, of the U.S. Justice Department, Criminal Division - Fraud Section, who prosecuted the case.
Source: U.S. Department of Justice, Office of the United States Attorneys
