NORFOLK, Va. – Armad Jamall Gatling, 26, of Portsmouth, Virginia, is headed to federal prison for 18 years after being convicted of illegally possessing a firearm as a convicted felon, aggravated identity theft, and orchestrating a massive credit union fraud scheme. The sentencing comes after a chaotic arrest following a high-speed chase that endangered the public.
Federal prosecutors detailed how Gatling, also known as “Peso Chapo,” operated as a drug dealer in Portsmouth, selling cocaine to a confidential source on four separate occasions in late 2018. The criminal activity didn’t stop there. In July 2019, Gatling brazenly sold an AR-style rifle to the same source, fully aware the individual was a convicted felon – a clear violation of federal law.
The scheme escalated into a sophisticated fraud operation leveraging the Dark Web. Between January and September 2019, Gatling recruited over 50 co-conspirators to open fraudulent credit union accounts. They deposited counterfeit checks, then swiftly withdrew the funds before the scheme could be detected. The operation also involved the illegal acquisition of Personal Identifying Information (PII) from the Dark Web, used to create cloned credit cards. Gatling and his crew used these cards to purchase trailers, lawn equipment, motorcycles, and other valuable property, which was then resold for profit.
Law enforcement caught up with Gatling after he was federally indicted in September 2019. Rather than surrender, he led Chesapeake Police Department officers on a reckless pursuit, reaching speeds of 120 mph, running red lights, and even driving into oncoming traffic on a bridge. He ultimately abandoned his vehicle and fled on foot before being apprehended. A search of the vehicle revealed nine credit cards in other people’s names, a card swipe reader, a fraudulent license, and a security baton.
Investigators discovered PII for dozens of victims stored on Gatling’s electronic devices, linking him directly to the widespread fraud. The total financial loss inflicted on the victims exceeds $368,000. Acting U.S. Attorney Raj Parekh emphasized the severity of Gatling’s crimes, highlighting the defendant’s recruitment of a large network of co-conspirators and the significant financial damage caused to numerous individuals.
The case, a part of “Operation High Tide” – a narcotics and firearms investigation targeting high-impact criminals in the Hampton Roads area – was prosecuted by Assistant U.S. Attorney William Jackson. It also falls under the umbrella of “Project Safe Neighborhoods,” a Department of Justice initiative aimed at reducing violent crime. The collaborative effort involved the U.S. Attorney’s Office, ATF, Secret Service, NCIS, and the Chesapeake Police Department.
Related Federal Cases
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- Kenneth Thom, Investment Adviser Fraud, New York NY, 2026 · Oregon
- Jeffrey Phares, Wire Fraud Scheme, Fayetteville WV, 2023 · Virginia
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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