U.S. Attorney Philip R. Sellinger | U.S. Department of Justice
A Utah man, Timothy Gibson, has been sentenced to 57 months in prison for his involvement in two criminal schemes. The sentencing was announced by U.S. Attorney Philip R. Sellinger and took place in Trenton federal court.
Gibson, aged 48 from Lehi, Utah, pleaded guilty to charges related to a multi-million dollar credit card fraud scheme and making false statements to a bank. Judge Georgette Castner handed down the sentence.
The credit card fraud involved soliciting personal information from straw applicants to submit falsified credit card applications. These cards were used for purchases that generated rewards points before being canceled prior to payment due dates. Gibson's business facilitated sham transactions to further accumulate these points.
The scheme reportedly included over 8,000 fraudulent accounts and involved more than 1,500 straw cardholders, leading to the acquisition of over 800 million rewards points valued at over $8 million.
Charges remain pending against Aharon Lev of Lakewood, New Jersey, who is presumed innocent unless proven guilty.
In a separate incident linked to the Paycheck Protection Program (PPP), Gibson falsely reported employee numbers and payroll details of a business in May 2020. This was during the COVID-19 pandemic when the PPP was established under the CARES Act as an incentive for small businesses.
Besides his prison term, Gibson will undergo three years of supervised release and has been ordered to pay restitution.
U.S. Attorney Sellinger credited IRS-Criminal Investigation special agents and postal inspectors for their roles in investigating the case. Assistant U.S. Attorney Matthew Specht represented the government in this matter.
