Thousands of consumers in New York were left reeling after a massive credit card fraud scheme came to light. The scam, operated by five individuals, netted over $28 million in unauthorized charges.
According to court documents, James Beckish, Richard Witcher, James Toner, Peter O’Brien, and Joseph Anthony DeMaria created and operated more than 100 companies that purported to sell dietary supplements and similar products called ‘nutraceuticals.’
The companies’ websites were used to justify unauthorized and recurring charges on tens of thousands of credit card numbers that the defendants had illicitly purchased or obtained.
For example, in one email between Toner and Beckish in October 2013, Toner stated that they could simply charge unsuspecting customers by falsely ‘say[ing] they opted in online for something.’
The scheme was designed to bilk credit card companies, with the defendants creating new companies and websites to avoid being shut down by credit card processors.
Acting Manhattan U.S. Attorney Joon H. Kim stated, ‘These defendants allegedly created and operated more than 100 companies that specialized in one service: ripping off consumers and credit card companies.’
The U.S. Secret Service worked closely with law enforcement agencies to bring the scheme to an end.
The defendants were arrested on [date] and presented before Magistrate Judges in the District of New Jersey, the Middle District of Florida, and the Southern District of Florida.
As a result of the scheme, thousands of consumers were left with unauthorized charges on their credit cards, affecting thousands of consumers and leaving credit companies holding the bag.
The exact date of the crime was not specified, but the scheme is reported to have taken place between 2013 and 2016.
The defendants were charged with various crimes, including conspiracy to commit wire fraud, wire fraud, and money laundering.
At this time, the outcome of the case is unknown.
The case serves as a reminder of the importance of being cautious when making online purchases and the need for credit card companies to remain vigilant in preventing and detecting fraud.
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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