MARYSVILLE, WA – Jeffery Douglas Mann, the mastermind behind a sophisticated gift card fraud operation that bilked Target and its customers out of over $700,000, received a five-year federal prison sentence this week. The operation, spanning Washington, Oregon, California, Nevada, and Colorado, relied on cracking the codes behind Target gift cards and exploiting the retail giant’s customer service systems.
According to court records, Mann, of Marysville, Washington, led a team of five individuals who developed a method to reverse-engineer the unique bar codes on legitimately purchased Target gift cards. Between May and December 2017, the crew systematically drained balances from these cards, often converting the ill-gotten gains into bitcoin through online marketplaces. The scale of the fraud was staggering; on a single day in November 2017, Mann and his crew racked up $6,900 in purchases at a single Target store in Tukwila, Washington, using approximately 180 compromised gift card numbers.
The scheme worked by verifying the balances of stolen gift card numbers through Target’s automated phone system. Once confirmed, the numbers were loaded onto mobile wallets, allowing the conspirators to make purchases of merchandise and additional gift cards across multiple states. Unsuspecting cardholders discovered the fraud when they attempted to use their cards, only to find zero balances. Target ultimately reimbursed affected customers and modified its gift card system in December 2017, effectively shutting down the operation.
“This is not a victimless crime – it impacts real people,” U.S. District Judge James L. Robart told Mann during sentencing, acknowledging the defendant’s “talent” while condemning its misuse. Mann pleaded guilty to wire fraud in March 2019. He was also ordered to pay over $214,000 in restitution. The feds aren’t letting this one slide.
Mann isn’t the only one facing consequences. Corey Mosey received a 46-month prison sentence, Joshua Newman was sentenced to 38 months, and Derrick Quintana will spend 27 months behind bars. Kennady Weston is currently navigating the legal system through participation in federal drug court. Collectively, the five defendants have agreed to pay roughly $263,000 in restitution, in addition to the amount ordered from Mann.
The U.S. Secret Service led the investigation, with crucial support from police departments in Kirkland, Lynnwood, and West Linn, Oregon. Special Assistant United States Attorney Benjamin Diggs and Assistant United States Attorney Steven Masada prosecuted the case. This bust serves as a stark reminder that even seemingly low-tech crimes can yield massive financial losses and carry serious penalties.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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