Two Miami Gardens men are headed to federal prison after running a high-tech credit card skimming operation across gas stations in Rock Island, Illinois. Osiel Valdes-Perez, 22, and Felix Alain Delgado-Martinez, 39, were each sentenced to three years behind bars on Nov. 16 for their roles in a conspiracy to steal and exploit cardholder data using hidden electronic devices.
The scheme, which unfolded in May and June 2015, relied on magnetic strip skimmers covertly installed inside gas pump terminals. The devices harvested sensitive account information every time a customer swiped their credit or debit card. The defendants then encoded the stolen data onto blank cards, turning honest drivers’ transactions into fuel for a criminal enterprise.
With the illicitly obtained data, Valdes-Perez and Delgado-Martinez bought gift cards and small electronics—easily resold, untraceable, and ripe for quick profit. Their spree left a trail of financial chaos for victims, prompting U.S. District Judge Sara Darrow to order each man to pay $5,243 in restitution to those affected by the fraud.
Both men admitted guilt this year—Valdes-Perez on Feb. 18, Delgado-Martinez on March 3—as part of plea agreements with federal prosecutors. A third suspect, Pedro Enrique Quevedo-Perez, entered a guilty plea on Oct. 12, 2016, and awaits sentencing on Feb. 16, 2017, as the case continues to unwind.
Assistant U.S. Attorney Meredith DeCarlo led the prosecution, weaving together digital evidence, surveillance data, and suspect testimony to dismantle the ring. The investigation was a joint effort between the U.S. Secret Service, long tasked with financial cybercrime, and the Moline Police Department, whose local presence cracked open the operation.
This conviction underscores the growing threat of physical point-of-sale skimming in an era of digital banking. While cyberattacks dominate headlines, the Rock Island case proves that old-school hardware hacking remains a profitable—and punishable—danger to consumer security.
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Key Facts
- State: Illinois
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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