The United States Attorney's Office announced that during a federal court session in Billings on March 3, 2010, before Senior U.S. District Judge Jack D. Shanstrom, RANDALL CRAIG SENN, a 27-year-old resident of Billings, was arraigned and pled guilty to conspiracy to commit fraud. Sentencing has been set for June 2, 2010. He is currently released on special conditions.

In an Offer of Proof filed by Assistant U.S. Attorney Ryan M. Archer, the government stated it would have proved at trial the following:

Rosetta Stone is a company that sells all-inclusive language tutorials and other products. The fraud enforcement section of Rosetta Stone determined that a customer using the username "Littlbuger" made thousands of dollars in online purchases using numerous fraudulent credit card numbers.

The U.S. Secret Service discovered that a majority of the fraudulently used credit cards were issued by Chase Bank. Chase Bank determined that the cards were compromised by a computer program called "Credit Master." This program creates valid credit card numbers using an algorithm. The numbers used to purchase Rosetta Stone products belonged mostly to small business owners, each of whom had reported one unauthorized purchase to Rosetta Stone.

Investigation into the username "Littlbuger" revealed documents and records identifying SENN in Billings. SENN was further identified as re-selling Rosetta Stone products through online services such as E-Bay, ioffer.com, Blue-pay and Google Check-out - several of which suspended SENN from selling items based on the fraudulent nature of the transactions.

A search warrant was executed at SENN's place of business and personal residence. At the time, SENN stated that he met Osama Moosa Al Hami and his brother online. Al Hami resided in Jordan and provided the Rosetta Stone products for SENN to re-sell in the United States through online services. Al Hami had Rosetta Stone merchandise directly delivered to SENN's residence and SENN agreed to sell the products for half their retail value. SENN kept 45-50% of the profits while sending the rest to Al Hami. He also admitted to selling a few products from Hasbro Toys and Pet Medication. SENN stated that at the end he knew it was not right, but could not stop because of the amount of money coming in.

A search of SENN's computers revealed correspondence with Al Hami indicating that SENN was aware of the scheme. At one point SENN requested that Al Hami create a fabricated certificate indicating they were authorized retailers of Rosetta Stone products. Western Union and Money Gram wires also showed that SENN wired Al Hami money in Zarka and Amman, Jordan.

In coordination with the Secret Service, the Jordanian Public Security Directorate located, identified and arrested Osama Al Hami in Amman Jordan. A forensic examination of his computer disclosed several unauthorized credit card numbers along with a program capable of generating valid numbers. Al Hami admitted to using the credit cards to unlawfully purchase goods from Rosetta Stone and Hasbro. He also implicated SENN as his partner. Jordanian law enforcement officials are pursuing charges against Al Hami in the Jordanian justice system.

A financial analysis indicates that SENN made approximately $100,000 between October 2008 and April 2009.

SENN faces possible penalties of 5 years in prison, a $250,000 fine and 3 years supervised release.

The investigation was conducted by the U.S. Secret Service.

A copy of the Offer of Proof can be obtained by contacting Sally Frank at (406) 247-4638.

 

 

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