The Southern District of New York announced that Brandon Becker, former CEO of CardReady, LLC, has received a seven-year prison sentence for his involvement in a credit card laundering scheme. The scheme, which Becker ran with co-conspirators, deceived customers seeking debt reduction and resulted in theft of over $19 million. "Over a two-year period, Brandon Becker and his co-conspirators preyed on nearly 20,000 victims who were trying to reduce their debt burdens," stated Acting U.S. Attorney Matthew Podolsky.
Becker admitted guilt in court presided over by U.S. District Judge Loretta A. Preska. The fraud included creating fake merchant accounts to deceive credit card processors and banks into approving transactions, essentially allowing Becker and associates to mislead nearly 20,000 customers. Podolsky described how Becker tasked others at CardReady to enlist straw owners for sham companies. These actions resulted in fraudulently processing over $19 million.
Becker, once the CEO of the Los Angeles-based CardReady, was involved in finding merchants in need of credit card processing services. This included a deal in 2012 between CardReady and E.M. Systems, a Florida company run by co-defendant Steven Short. Under the agreement, CardReady would get a share of E.M. Systems’ credit card transactions and help integrate them into the credit card processing network.
The illicit activities expanded, involving over 270 recruited signers and the creation of some 800 fake merchant accounts. This operation supported more than 30 high-risk clients, showcasing the systemized nature of the fraudulent scheme. In terms of punishment, Becker, aged 53, was also sentenced to three years of supervised release and must pay restitution totaling $1,910,600.05, besides forfeiting $11,405,964.00.
Becker's partner in crime, Steven Short, aged 48, had already pleaded guilty in August 2022 and was sentenced to 78 months in prison last year. Short also faces three years of supervised release with restitution and forfeiture obligations. The Federal Bureau of Investigation and the Federal Trade Commission were recognized for their investigative contributions. This case was managed by the Office's Complex Frauds and Cybercrime Unit.
Assistant U.S. Attorneys Vladislav Vainberg and Timothy Capozzi led the prosecution efforts against Becker and his accomplices. Podolsky assured, "With today’s sentence, Becker faces the consequences of this massive fraud, sending the clear message that corporate executives who facilitate fraud will be held accountable for their crimes."
