Owner of Internet Service Provider Sentenced to 18 Months in Prison for Credit Card Scam (June 10, 2002)
DOJ Seal
June 10, 2002

U.S. Department of Justice
United States Attorney
Central District of California
Debra W. Yang
Thom Mrozek, Public Affairs Officer
(213) 894-6947
Contact: Elena Duarte
Assistant United States Attorney
(213) 894-8611

Owner of Internet Service Provider Sentenced To 18 Months In Prison For Credit Card Scam A Bay Area man was sentenced today to 18 months in federal prison for running a scheme in which he fraudulently obtained and used credit card numbers that belonged to customers of his Internet-access company

Kevin Louis Yaeger, 29, was sentenced this morning by United States District Judge Stephen V. Wilson in Los Angeles. In addition to the prison term, Judge Wilson ordered the defendant to pay $209,899.50 in restitution.

Yaeger has been in custody for approximately one year in relation to a grand theft conviction he suffered in Santa Clara County. Prior to being taken into custody on that case, he resided in San Jose. During the course of the criminal conduct in the federal case, from November 1997 to April 1999, he resided in West Hollywood.

Yaeger pleaded guilty on April 1 to two counts of wire fraud. The scheme to defraud stemmed from Yaeger’s ownership of Priority Web, later known as Priority Web USA, a Beverly Hills-based Internet service provider. When Priority Web subscribers made payment, Yaeger took their credit card numbers and made unauthorized charges that totaled nearly $210,000.

The case was investigated by the Federal Bureau of Investigation.