May 15, 2007

ICE uncovers metropolitan area credit card fraud scheme
Two arrested for allegedly embezzling $6 million from major banks including Bank of America, Citigroup, Wachovia

NEWARK, N.J. — U.S. Immigration and Customs Enforcement (ICE) agents today announced the arrests of two men for allegedly masterminding a significant credit card fraud scheme that resulted in the loss of over $6 million to credit card lenders and banks nationwide.

On May 11, special agents from ICE’s Office of Investigations in Newark, N.J., arrested Akbar Wrind, a 54-year-old resident of Bayonne, N.J., and Rafael Marte, a 47-year-old resident of Walnut Port, Pa., for knowingly, willfully, and with the intent to defraud and conspire, obtaining things of value aggregating over $1,000.

"Had this scheme gone unchecked, it would have resulted in continued and significant losses for the banks involved," said Julie L. Myers, Assistant Secretary of Homeland Security for Immigration and Customs Enforcement.  "Financial fraud results in costs that end up on the shoulders by law-abiding American citizens in higher rates and increased transaction fees."

ICE’s investigation revealed that in January 2004, the defendants conspired to establish lines of credit using false identification documents in the names of non-existent persons, according to court documents.  The defendants allegedly used those fraudulent credit cards to obtain cash, merchandise, and other things of value with no intent to pay back the lenders.

The defendants allegedly leased properties in Union and West New York, N.J., as “drop addresses” for the fraudulent bills and cash payouts.  Additionally, the defendants are alleged to have established companies that had no legitimate business purpose for a number of fraudulent purposes, including establishing credit card processing terminals and conducting fraudulent transactions with no intent to pay back the credit lenders.

The credit card issuers involved in this alleged scheme include Bank of America Corporation, Citibank, Discover, Chase, MBNA, First Union, Wachovia and Fleet. 

This type of non-traditional money laundering crime is commonly referred to as a credit card “bust-out” scheme.  Fraudulent credit cards are obtained for the sole purpose of removing all available credit and not repaying the lender.  Commonly, criminals use false identification documents to create fictitious identities, or purchase credit portfolios from individuals leaving the country. 

During the process of “busting out” accounts, the group will inflate the credit line they have created, and can at times double the amount of available credit through a process known as “check-kiting.” In this process, checks are written with insufficient funds, but credit limits are extended before the bank transaction is completed.

The Newark office of the United States Attorney for the District of New Jersey is prosecuting the case. 

“Citibank would like to thank the ICE special agents for their persistence in this extremely complex financial fraud case,” said Dick Boland, a representative of Citigroup investigative services.  “It is only due to the professionalism and determination of ICE that we were fortunate to have a successful outcome of this difficult case.”

In Fiscal Year 2006, ICE initiated more than 3,970 financial investigations that resulted in the seizure of roughly $137 million in currency and monetary instruments, as well as the arrest of 1,262 individuals, 936 indictments and 940 convictions.

-- ICE --

U.S. Immigration and Customs Enforcement (ICE) was established in March 2003 as the largest investigative arm of the Department of Homeland Security. ICE is comprised of five integrated divisions that form a 21st century law enforcement agency with broad responsibilities for a number of key homeland security priorities.

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