JOHN DOE CHARGED IN $155,000 FRAUD SCHEME
BOSTON, Mass. - A Brooklyn, New York, man was charged yesterday in federal court with bank fraud and credit card fraud in connection with a multi-state check and credit card fraud scheme.
JOHN DOE ("MIKHAIL"), aka GUIRGUIS MIKHAIL, aka GUIRGUIS E. MIKHAIL, aka GUIGUIS E. MIKHAIL, aka MIKHAIL GUIRGUIS, aka MIKHAIL E. GUIRGUIS, aka DANIEL PHILIP, aka AYMAN IBRAHIM KHALIL, who was arrested in New York on related charges on November 30, 2010, was charged in an Indictment with fourteen counts of bank fraud and eight counts of access device fraud.
The Indictment alleges that in 2008, Mikhail, using an alias, set up two shell corporations in Saugus, Massachusetts, registering their names with the Massachusetts Secretary of State's Office. According to the charges, Mikhail then opened business checking accounts in the name of the sham businesses at numerous banks in eastern Massachusetts. He also obtained credit card transaction capabilities for the sham businesses by opening merchant accounts with credit card processing companies. Over the course of nine days in mid-August 2008, Mikhail executed his fraudulent scheme by depositing bad checks in the business checking accounts and withdrawing available funds before the banks discovered that the checks were unfunded. At the same time, Mikhail used the credit card terminals he had fraudulently obtained for his sham businesses to process scores of "forced" credit card transactions, using closed or expired credit card numbers. While these credit card transactions were initially rejected, the Indictment alleges that Mikhail overrode the rejections by the fraudulent use of authorization codes, effectively forcing the transactions through. According to the Indictment, Mikhail deposited over $75,000 in bad checks and processed over $80,000 in fraudulent credit card transactions in a nine day period.
If convicted on these charges, Mikhail faces up to 30 years imprisonment to be followed by five years of supervised release, and a $1 million fine on each count of bank fraud, together with up to 10 years imprisonment to be followed by three years of supervised release, and a $250,000 fine on each count of access device fraud.
United States Attorney Carmen M. Ortiz and Steven Ricciardi, Special Agent in Charge of the United States Secret Service's Boston Field Office made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Donald J. Savery and Mary B. Murrane.
The details contained in the Indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.