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Department of Justice Acting United States Attorney Candace G. Hill Contact: Dawn Masden |
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August 11, 2009
INDIANA UNIVERSITY STUDENT AND TEXAS MAN PLEAD GUILTY TO CONSPIRACIES TO COMMIT WIRE FRAUD AND BANK FRAUD
– Two admit associated with individuals involved with shadowcrew.com website, a large online center for trafficking in stolen credit cards and identity information
LOUISVILLE, KY - Jeffrey Ryan Berg, age 23, of Bloomington, Indiana, and Phillip Levine, age 23, of Dallas, Texas, pled guilty to conspiracy to commit bank fraud and conspiracy to commit wire fraud, Acting United States Attorney Candace G. Hill of the Western District of Kentucky announced today.
Levine and Berg admitted that in 2005 and 2006 they conspired with each other and with Martin Ivach and others to execute a scheme to defraud federally-insured financial institutions and to obtain money owned by and under the control of those institutions by false pretenses. The scheme was to obtain credit card numbers issued to other individuals and using those stolen credit card numbers to effectuate transactions and obtain money, goods and services.
During the period of the conspiracies, Berg and Levine also conspired with Ivach to further their scheme to defraud by knowingly transmitting emails or causing emails to be transmitted, using wire communications in interstate commerce.
On March 24, 2006, Berg traveled from Bloomington, Indiana, to Louisville, Kentucky, with the intent of using stolen credit card account numbers to obtain money, goods, and services in Louisville. While in Louisville on that date, Berg also attempted to steal license plates from a parked vehicle. When arrested that same day in Louisville, Berg possessed, without lawful authority, credit card account numbers, as well as a list of all Office Max and Staples stores in Jefferson County, Kentucky; a list of stolen credit card account numbers; a magnetic strip recorder; a handgun, and other assorted computer equipment and paraphernalia.
During the period of the conspiracies, Berg and his co-conspirators encoded stolen credit card account numbers on other credit cards and used them to make purchases at "big box retailers" in Bloomington, Indiana; Dallas, Texas; and other locations. Members of the conspiracy obtained over $100,000 worth of money, goods, and services through his part in the scheme.
Berg, Levine, and Ivach were associated with and learned from individuals involved with a website that was a large online-center for trafficking in stolen credit card numbers and identity information. Other individuals associated with that same website previously pleaded guilty in United States District Court in Newark, New Jersey and admitted illegally trafficking in 1.5 million stolen credit card and bank card numbers, resulting in losses exceeding $4 million.
The maximum potential penalties are 60 years’ imprisonment, a $2 million fine, and supervised release for a period of 10 years.
The case is being prosecuted by Assistant United States Attorney Ann Claire Phillips, and it was investigated by the United States Secret Service.
The pleas were entered before James D. Moyer, United States Magistrate Judge, United States District Court, Louisville, Kentucky.
Berg and Levine are scheduled to be sentenced before Judge Charles R. Simpson, III on October 20, 2009, at 10:30 a.m., and November 23, 2009 at 2:30 p.m., respectively, in Louisville, Kentucky.
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