CLEVELAND, OH – Two Brazilian nationals are facing federal charges after a sting operation uncovered a sophisticated credit card skimming operation that siphoned funds from unsuspecting bank customers across Ohio. Felipe Trovo Pena, 27, and Antonio Pedro de Oliveira Neto, 26, were indicted on charges of conspiracy to commit credit card fraud, use of counterfeit credit cards, and possession of counterfeit credit cards, following their arrest last November.
The bust originated with a sharp-eyed teller at a Cortland Banks branch in Hubbard, Ohio, who alerted police to suspicious activity on November 12, 2017. The teller observed individuals making ATM withdrawals while deliberately obstructing the camera. It wasn’t an isolated incident; the same bank had been hit with fraudulent withdrawals just two days prior, setting off alarm bells.
Following the initial arrest, investigators executed a search warrant on a storage unit rented by Pena and Neto on West 61st Street in Cleveland. What they found was a fraudster’s treasure trove: a staggering $139,480 in cash, the pair’s legitimate Brazilian passports, and a cache of 420 cards with magnetic strips. Of those, 253 were confirmed to be counterfeit credit or bank cards loaded with stolen customer account data. Crucially, they also recovered two credit card skimming devices – the tools used to harvest the data in the first place.
Court documents reveal that Pena and Neto operated a systematic scheme between August and November 2017. They surreptitiously installed skimming devices on ATMs throughout the state, capturing magnetic stripe data from debit and credit cards as customers went about their daily routines. This stolen data was then re-encoded onto the counterfeit cards, allowing them to drain cash from victim accounts. The pair weren’t just targeting a few accounts; the operation was clearly designed to extract ‘hundreds of thousands of dollars,’ according to U.S. Attorney Justin E. Herdman.
“These defendants stole personal information from people and then used it to steal hundreds of thousands of dollars through counterfeit bank and credit cards,” Herdman stated. FBI Special Agent in Charge Stephen D. Anthony warned citizens to regularly monitor their bank and credit card statements for any unauthorized activity. Secret Service Special Agent in Charge Jonathan Schuck emphasized the complexity of these investigations, highlighting the successful collaboration between multiple law enforcement agencies. “This case involves suspects traveling around the state of Ohio and placing skimming devices on ATMs and stealing innocent peoples’ personal and financial information,” Schuck said.
The investigation was a joint effort by the FBI, U.S. Secret Service, Hubbard Police Department, and the Trumbull County Prosecutor’s Office. Assistant U.S. Attorney Jason M. Katz is prosecuting the case. While an indictment signifies a serious accusation, Pena and Neto are presumed innocent until proven guilty. The length of their sentence, if convicted, will be determined by the court, taking into account factors such as prior criminal history and their individual roles in the elaborate fraud scheme. The statutory maximum sentence has not been specified.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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