BUFFALO, N.Y. – A 20-year-old Miami man is facing up to 30 years in federal prison after pleading guilty to conspiracy to commit bank fraud, a scheme that flooded Western New York with counterfeit credit card data. Ernesto Alvarez Santos admitted to his role in a sophisticated operation that bilked banks and retailers out of over $120,000.
According to court documents, Santos, along with two accomplices, traveled from the Sunshine State to Hamburg, New York in January 2017. They weren’t there for the snow. They were there to deploy a network of re-encoded gift cards – plastic loaded with stolen account numbers. The Secret Service investigation revealed the trio received a stockpile of these counterfeit “access devices,” ready to drain legitimate accounts.
Between January 23rd and 24th, Santos and at least one co-conspirator systematically hit Walmart stores across Erie, Niagara, and Orleans Counties. They used a staggering 129 different counterfeit cards to purchase legitimate Walmart gift cards. These weren’t kept for personal use; the gift card numbers were immediately transmitted via cell phone to another conspirator, presumably for further exploitation. It was a rapid-fire scheme designed to maximize profit and minimize exposure.
The haul didn’t stop there. Authorities also recovered an additional 102 counterfeit access devices in Santos’ possession. These cards, also re-encoded with stolen credit and debit account information, represented even more potential losses for unsuspecting account holders. Crucially, none of the account holders had authorized the use of their information, making this a clear case of fraudulent intent.
The total estimated loss from the scheme amounted to $120,689.02. Acting U.S. Attorney James P. Kennedy, Jr. confirmed the guilty plea was the result of a thorough investigation led by the U.S. Secret Service, with Special Agent-in-Charge Lewis Robinson overseeing the case. The Secret Service, often known for protecting dignitaries, is a key player in combating financial crimes like this one.
Santos’ sentencing is scheduled for November 2, 2017, before Chief U.S. District Judge Frank P. Geraci, Jr. In addition to the potential 30-year prison sentence, Santos also faces a maximum fine of $1,000,000. The U.S. Attorney’s Office has not yet indicated whether it will seek the full penalty. His co-conspirators’ cases remain ongoing.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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