NY Man Pleads Guilty in $200M Credit Card Fraud Scam

TRENTON, N.J. – In a stunning admission, Habib Chaudhry, 49, of Valley Stream, New York, has pleaded guilty to leading one of the largest credit card fraud schemes in U.S. history, according to Acting U.S. Attorney William E. Fitzpatrick.

Chaudhry, who had been a fugitive for nearly four years before his capture in January 2017, admitted his role in a conspiracy that swindled over $200 million from businesses and financial institutions. The scheme, which involved fabricating more than 7,000 false identities, was led by Tahir Lodhi, Babar Qureshi, Ijaz Butt, and others.

The elaborate fraud process included creating fraudulent identification documents, boosting credit scores through fake profiles with credit bureaus, and then spending as much money as possible on these fictitious cards without any intent to repay. Chaudhry was responsible for obtaining the fraudulent credit cards and directing them to addresses under his control.

Today’s plea comes after Chaudhry was initially charged in 2013. Sentencing is scheduled for September, where he faces up to 30 years in prison and a $1 million fine.

Fitzpatrick credited the FBI’s Cyber Division, U.S. Postal Inspection Service, U.S. Secret Service, and the U.S. Social Security Administration for their roles in the investigation. The case was brought in coordination with the Financial Fraud Enforcement Task Force, a coalition of federal, state, and local agencies dedicated to combating financial crimes.

With over 20 federal agencies involved, the task force has made significant strides in investigating and prosecuting financial fraud cases, enhancing cooperation among law enforcement, and protecting the public from such heinous acts of financial deception.

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