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Five Indicted in $800,000 Target Gift Card Heist
SEATTLE – A brazen scheme to pilfer funds from Target gift cards has landed five individuals in federal court, accused of defrauding the retail giant and its customers out of nearly $800,000. The U.S. Attorney’s Office in Seattle announced today a federal grand jury indictment charging the group with wire fraud, detailing a sophisticated operation that spanned at least five states.
The ringleader appears to be JEFFERY DOUGLAS MANN, 29, of Marysville, Washington, and JOSHUA NEWMAN, 33, of Kirkland, Washington, who are scheduled to appear in U.S. District Court today. COREY MOSEY, 30, of Lynnwood, Washington, is already in custody on unrelated charges. Law enforcement is currently hunting KENNADY WESTON, 22, and DERRICK QUINTANA, 26, both of Everett, Washington.
Between May and December 2017, the group allegedly exploited a vulnerability in Target’s gift card system. They didn’t hack; they reverse-engineered. Using a specialized algorithm, they identified unique bar code numbers of legitimately purchased gift cards. Then, dialing into Target’s automated customer service line, they verified balances linked to those stolen numbers. The stolen balances weren’t pocketed directly; instead, the co-conspirators loaded the active numbers onto mobile wallets, using them to purchase merchandise and *more* gift cards at Target stores in Washington, Oregon, California, Nevada, and Colorado.
The scale of the operation is staggering. In one instance, on November 2017, MANN, WESTON, QUINTANA, and accomplices drained approximately 180 compromised gift cards at a single Target store in Tukwila, Washington, racking up $6,900 in fraudulent purchases. Unsuspecting cardholders later discovered their accounts were empty. Target patched the vulnerability in December 2017, effectively shutting down the scheme.
The indictment alleges the crew frequently converted their ill-gotten gains into bitcoin, utilizing an internet marketplace to offload illegally purchased goods and gift cards. Authorities believe this cryptocurrency angle helped them obscure the flow of funds. The U.S. Secret Service led the investigation, receiving assistance from police departments in Kirkland, Lynnwood, and West Linn, Oregon.
Assistant United States Attorneys Steven Masada and Benjamin Diggs are prosecuting the case. Diggs is a specially designated attorney from the Social Security Administration, assigned to federal fraud prosecutions. If convicted of wire fraud, each defendant faces up to 20 years in prison. It’s important to remember that these are allegations, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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