CAMDEN, N.J. – A six-year run from the law ended for Jose Salazar, 44, of Riverside, California, who today confessed to his central role in a nationwide scheme to rip off customers of Michaels stores. Salazar pleaded guilty to conspiracy to commit bank fraud, admitting to helping steal the data from a staggering 94,000 debit and credit cards.
The operation, spanning 80 Michaels locations across 19 states including New Jersey, saw conspirators swapping out legitimate point-of-sale (POS) terminals with rigged counterfeits. These devices silently captured customer account and PIN information, funneling the stolen data wirelessly to the thieves. Between February and April of 2011, they amassed a trove of compromised card details, setting the stage for widespread fraud.
Salazar wasn’t just a foot soldier; he was a recruiter. In 2011, he brought new players into the scheme, and from April to May of that year, worked alongside Angel Angulo and others to use the stolen information. They manufactured counterfeit bank cards, complete with the stolen PINs scribbled on the magnetic stripe, and then systematically drained funds from hundreds of victim’s accounts via ATMs. Angulo previously copped a plea in 2017 and received a three-year prison sentence on March 15, 2018.
Salazar himself managed to evade capture for nearly six years, becoming a fugitive after being indicted in 2015. His freedom ended in September 2020 when he was apprehended in Mexico City. He was extradited back to the U.S. in January 2021, arriving at Philadelphia International Airport where he was immediately taken into custody. Today’s guilty plea was entered via video conference before U.S. District Judge Joseph H. Rodriguez.
Acting U.S. Attorney Rachael A. Honig praised the relentless work of the U.S. Secret Service, led by Special Agent in Charge James Henry in Philadelphia, for cracking the case. She also acknowledged the crucial assistance of the U.S. Marshals Service, under the direction of Juan Mattos, and the International Criminal Police Organization (Interpol) in tracking down Salazar. This wasn’t a victimless crime; the damage to countless bank accounts and the erosion of public trust in retail transactions is substantial.
Salazar now faces a maximum sentence of 30 years in prison and a $1 million fine. His sentencing is scheduled for August 10, 2021. Assistant U.S. Attorney Jonathan Fayer of the U.S. Attorney’s Office Economic Crimes Unit is prosecuting the case. This case serves as a stark reminder that even sophisticated criminal enterprises will eventually face justice, no matter how long they attempt to hide.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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