NEWS RELEASE
UNITED STATES ATTORNEY'S OFFICE
WESTERN DISTRICT OF VIRGINIA
John L. Brownlee United States Attorney Brian McGinn Public Affairs Specialist |
BB&T Building 310 1st Street, S.W., Room 906 Roanoke, Virginia 24011 (540) 857-2974 FAX (540) 857-2179 |
February 14, 2008
THREE INDICTED FOR INVOLVEMENT IN CREDIT CARD MASTERING SCHEME
United States Attorney John L. Brownlee announced today that Steve Allen Black, age 31, of Evington, Virginia, Ronald Edward Black, age 26, of Evington, Virginia and Dereck Lorenzo Dunston, 40, of Evington, Virginia were indicted by a federal Grand Jury sitting in Roanoke, Virginia.
The accused were charged in a 25 count indictment on charges related to a credit card mastering scheme. According to the indictment, the three defendants participated in a activities in which legitimate access device account numbers were successfully coded on to counterfeit access devices.
Starting in April of 2007 and running until January of 2008, the scheme accounted for more than 3,000 fraudulent transactions and over $131,000 in fraudulent charges to be made in the Western District of Virginia, and elsewhere. Those charges were made using over 500 fraudulent credit cards.
The three face the following charges:
Steve Allen Black: one count of conspiracy, seven counts of wire fraud, one count of bank fraud, two counts of access device fraud, threes counts of aggravated identity theft and two counts of access device fraud (possess more than 15)
Ronald Edward Black: one count of conspiracy, one count of mail fraud, one count of wire fraud, one count of bank fraud, two counts of access device fraud and one count of aggravated identity theft.
Dereck Lorenzo Dunston: one count of conspiracy, five counts of wire fraud, one count of bank fraud, two counts of access device fraud and one count of aggravated identity theft.
According to the indictment, Ronald Black, Steve Black and Dunston traveled to New York where they obtained the counterfeit devices. They also had them sent to the Western District of Virginia via United States Mail.
Throughout the Western District of Virginia, the three accused, who are known in the local community as the “Gas Men” used the counterfeit devices to purchase goods and services from a variety of local merchants. Those merchants include: 7-eleven, Amoco Oil, Exxon Mobil, Kroger, Sheetz, Shell Oil and Wilco Hess. More specifically, the fraudulent charges were made at locations in Altavista, Bedford, Forest, Harrisonburg, Lynchburg, Madison Heights, Roanoke and Salem.
According to the indictment, the accused would meet individuals at a Lynchburg car wash and either follow or ride with those individuals to a local gas station. Once there, the defendants would utilize the pay at the pump feature and swipe a counterfeit access device as payment of the merchandise or gasoline. The defendants would then receive a cash payment for approximately half of the cost of the merchandise or gasoline charged to the counterfeit card. The proceeds would then be split between the conspirators.
Court documents revealed that between April 2007 and September of 2007 a large number of fraudulent transactions occurred on counterfeit access devices issued by the Capital One company in and around the Lynchburg area.
In the most egregious case, the Sheetz store located at 14480 Wards Road in Lynchburg received 1,198 fraudulent transactions in the six month period.
When arrested, Dereck Dunston was found to be in possession of eight counterfeit access devices on his person. Authorities found another 155 access devices in various locations throughout his residence. Law enforcement officials also found and an additional 50 counterfeit gift cards in a US Postal Service, 2-day priority mail envelope addressed to “Mr. Black, 149 Reichard Drive, Madison Heights, Virginia.”
The investigation of this credit card mastering scheme was begun by the Lynchburg Police Department and handled by the Central Virginia Computer Crimes Task Force, the Federal Bureau of Investigation, the United States Secret Service, the Virginia State Police, the Amherst County Sheriff’s Office, the Campbell County Sheriff’s Office and the Longwood University Police Department.
If convicted on all counts, the maximum penalty faced by Steve Allen Black is 77 years imprisonment and/or a fine of $2 million. If convicted on all counts, the maximum penalty faced by Ronald Black is 87 years imprisonment and/or fines of $2 million. If convicted on all counts, the maximum penalty faced by Dereck Dunston is 67 years and/or a fine of $1.75 million.
Assistant United States Attorney Charlene Day will prosecute the case.
A Grand Jury indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.