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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of North Carolina

FOR IMMEDIATE RELEASE
Friday, October 5, 2018

Ninth and Tenth Conspirators Sentenced to Prison in Identity Theft and Credit Fraud Scam at Sams Club and Walmart Stores

Raleigh - United States Attorney Robert J. Higdon, Jr. announced that today in federal court United States District Judge Terrence W. Boyle sentenced two additional defendants to federal prison for their participation in an identity theft and credit card scam carried out at various Walmart and Sams Club stores.  The Court also directed that each of the defendants serve terms of supervised release, and the forfeiture of the proceeds of their crimes.

In November of 2015, a grand jury issued a true bill of indictment charging ten defendants with engaging in a complicated scheme involving the use of stolen credit information.  The indictment alleged that the defendants acquired stolen credit information from overseas hackers, and then encoded the stolen credit information onto plastic gift cards.  Members of the conspiracy then took the counterfeit gift cards to Walmart locations in various states and used them to buy genuine Walmart gift cards.  After acquiring genuine gift cards, the conspirators took them to Sams Club stores (who accept Walmart gift cards as tender) where they used them to purchase more than $1 Million in cigarettes.  The conspirators then sold off the cigarettes for cash to various black market vendors.

SALIFU JALLOW, 33, of Sugarhill, GA, who previously pleaded guilty, was sentenced to 60 months in prison on charges of Conspiracy to Commit Money Laundering and Aggravated Identity Theft.  JALLOW was also ordered to serve a three year term of supervision upon release from prison.

ABDOULAIE FRANCIS LOWE NICOLAS, 30, of Raleigh, NC, who previously pleaded guilty, was sentenced to 24 months in prison on the charge of Conspiracy to Commit Money Laundering.  NICOLAS was also ordered to serve a three year term of supervision upon release from prison.

Investigation of this case was conducted by the United States Secret Service, with the assistance of the Wake Count Sheriff’s Office, the Durham Police Department, and the Fuquay Varina Police Department.  The Defense Criminal Investigative Service also assisted in the prosecution of the case.  Assistant United States Attorney William M. Gilmore represented the United States.

Topic(s): 
Financial Fraud
Updated October 5, 2018