Garri Shihman, 46, of Parkland, Fla., is staring down 30 years in federal prison after being unsealed on a single-count indictment accusing him of a sprawling fraud operation that exploited credit card networks to launder payments for illegal pharmaceuticals and counterfeit goods. The scheme, which targeted major credit card processors, relied on deception, shell companies, and fake websites to slip past corporate firewalls and federal oversight.
The indictment, returned December 12, 2017, charges Shihman with conspiracy to commit mail fraud, wire fraud, and bank fraud—each carrying severe federal penalties. Prosecutors allege he helped design and execute a method to process transactions for prohibited online sales by disguising the nature of the goods. Credit card companies explicitly bar their use for online pharmaceuticals and trademark-infringing products. Shihman and his co-conspirators bypassed those rules through a network of fraudulently obtained merchant accounts.
According to court documents, Shihman and others created shell corporations and built corresponding websites falsely claiming to sell legitimate products. These fronts were then used to apply for merchant accounts under false pretenses. Once approved, the accounts processed payments for illicit pharmaceuticals and counterfeit goods. The fraud didn’t stop at the sale—conspirators manipulated consumer billing statements to display shell company names and phone numbers, obscuring the true origin of charges.
To prevent red flags, the group operated a call bank where employees fielded customer complaints about unexplained charges. Agents were trained to reveal the real nature of the transactions—illicit drug or fake product purchases—in a bid to stop cardholders from filing charge-backs. Those reversals could have triggered audits, exposed the shell network, and shut down the entire operation.
The stakes are high: the law allows for a maximum sentence of 30 years in prison and a $1,000,000 fine, or both. Assistant United States Attorney Brendan T. Conway is leading the prosecution. Under Federal Sentencing Guidelines, the final penalty will hinge on the offense’s severity and Shihman’s criminal history—if any exists.
The investigation was a multi-agency takedown involving the Food and Drug Administration – Office of Criminal Investigations, Homeland Security Investigations, Pennsylvania State Police, and the United States Postal Inspection Service. Authorities stress that an indictment is not a conviction: Garri Shihman is presumed innocent until proven guilty in a court of law. But the evidence, prosecutors say, paints a picture of a calculated, high-stakes fraud enterprise run from the shadows.
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Key Facts
- State: Pennsylvania
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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