BOSTON – A 67-year-old Florida man, now residing in Melrose, Massachusetts, has confessed to a brazen scheme that bilked credit card companies out of over $160,000. Charles J. Pedoto, formerly of Naples, Florida, pleaded guilty in federal court today to conspiracy to commit access device fraud, two counts of access device fraud, and one count of aggravated identity theft.
The scam, operating between April 9, 2014, and May 14, 2014, revolved around the creation of entirely fictitious restaurants. Pedoto and his accomplices established shell entities including Marshalls Steakhouse, Carroll Steak, Richards Steakhouse, MJ Fox Pub, and Robertson Steak, then opened corresponding bank accounts. They weren’t serving steaks; they were serving themselves at the expense of legitimate cardholders.
The operation involved obtaining stolen credit and debit card account numbers, then illegally re-encoding the magnetic strips of cards to create counterfeit access devices. These fake cards were then used to make purchases at the ghost restaurants. Funds from the fraudulent transactions were deposited into the accounts, quickly withdrawn, and ultimately funneled to Pedoto through a complex system utilizing a fraudulent Massachusetts identification card in the name of Francis P. Rosen.
Federal investigators caught a break with a simple trash pull at Pedoto’s Naples, Florida residence on May 9, 2014. The search uncovered numerous receipts tied to fraudulent charges at Robertson Steak, alongside a plastic card bearing two stolen credit card numbers – one linked to a fraudulent charge at Carroll Steak and the other to Robertson Steak. The evidence painted a clear picture of systematic fraud.
The financial impact of Pedoto’s scheme totaled $160,395 in losses for two credit card processing companies. Judge Indira Talwani has scheduled sentencing for September 6, 2018. Pedoto faces a potentially lengthy prison sentence. Conspiracy to commit access device fraud carries a maximum of five years. Access device fraud carries a maximum of ten years. Crucially, the charge of aggravated identity theft mandates a consecutive two-year sentence, in addition to any other penalties imposed.
The case was a joint effort by United States Attorney Andrew E. Lelling, the U.S. Secret Service (led by Special Agent in Charge Stephen A. Marks, Boston Field Office and Resident Agent in Charge Jeff Kelly, Fort Myers Resident Office), and Assistant U.S. Attorney Sandra S. Bower of Lelling’s Major Crimes Unit. The Secret Service, usually focused on protecting dignitaries, demonstrated its effectiveness in tackling sophisticated financial crimes. Pedoto will likely have plenty of time to reflect on his choices behind bars.
Related Federal Cases
- Gregory Charles Grimm, Wire Fraud Conspiracy, FL 2017 · Massachusetts
- Lynrolte Cezaire, Medicare Identity Theft, MA 2024 · Pennsylvania
- Angel L. Morales, ID Theft and Bank Fraud, NY 2024 · Pennsylvania
- Michael ODonovan, Identity Theft, Massachusetts 2023 · Washington
- Viviane Cazeau, Bank Fraud Scheme, Massachusetts, 2023 · New Hampshire
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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