CAMDEN, NJ – A brazen scheme to rip off nearly 94,000 Michaels customers across 19 states landed Jose Salazar, 45, of Riverside, California, a 51-month federal prison sentence. The operation involved installing skimming devices on point-of-sale terminals, harvesting debit and credit card data, and draining victims’ bank accounts. Acting U.S. Attorney Rachael A. Honig announced the sentencing today, finally closing a case that dates back over a decade.
Salazar, also known as “Tito,” pleaded guilty via video conference to one count of conspiracy to commit bank fraud before U.S. District Judge Joseph H. Rodriguez. The court heard how Salazar and his crew systematically infiltrated approximately 80 Michaels stores, swapping out legitimate POS terminals with counterfeit ones rigged with wireless technology. These devices silently captured account numbers and PINs, providing the conspirators with a treasure trove of stolen financial information.
Between February and April of 2011, the group amassed roughly 94,000 compromised card accounts. They didn’t just stop at data theft. Salazar recruited help in 2011, and from April to May 2011, he, along with Angel Angulo and others, used the stolen data to create counterfeit bank cards. These cards, paired with the stolen PINs, were then deployed at ATMs to withdraw cash from the unsuspecting victims’ accounts. Angulo previously copped a plea and received a three-year sentence in 2018.
The scale of the fraud was significant. Judge Rodriguez didn’t just hand down the 51-month prison term; he also ordered Salazar to serve five years of supervised release after his incarceration and to pay a hefty $617,534.94 in restitution to cover the losses inflicted on the victims. It’s a start, but recovering those funds will likely be a long shot.
The U.S. Secret Service, led by Special Agent in Charge James Henry in Philadelphia, spearheaded the investigation, finally bringing Salazar to justice after years on the run. They received crucial assistance from the U.S. Marshal Service, under the direction of Juan Mattos, and the International Criminal Police Organization. Assistant U.S. Attorney Jonathan Fayer, of the Economic Crimes Unit, prosecuted the case.
This case is a stark reminder of the ever-present threat of financial fraud and the sophisticated methods criminals employ to exploit vulnerabilities in the retail system. While Salazar is behind bars, the Secret Service and federal prosecutors continue to pursue other financial crimes, working to protect consumers from these predatory schemes. The question remains: how many others were involved, and are they still operating under the radar?
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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