Former U.S. Navy Member Sentenced for Credit Card Fraud and Identity Theft Scheme

NEWS RELEASE SUMMARY – June 28, 2019

SAN DIEGO – Fedrick Emery of San Diego was sentenced in federal court today to 45 months in custody and 3 years of supervised release for a fraud scheme he began while an active duty member of the U.S. Navy.  According to his plea agreement, Emery and his co-conspirators obtained credit card numbers belonging to real individuals and created counterfeit credit cards and gift cards that Emery then used at over twenty Marine Corps Exchange (“MCX”) locations and Navy Exchange (“NEX”) locations in San Diego and around the country.  Between April 2017 and February 2018, Emery’s fraud resulted in a loss of over $75,000 to the MCX and NEX. 

At the same time, from approximately December 2017 to May 2018, Emery stole the identities of four individuals and used their personal information to obtain car loans, personal loans, and credit cards.  With the stolen information, Emery purchased at least seven luxury automobiles and racked up thousands of dollars in debt that he immediately defaulted on.  In all, Emery’s bank fraud resulted in a loss of over $290,000 to nine different banks.

“The financial toll exacted by identity theft can be crippling, and the emotional trauma can be equally devastating,” said United States Attorney Robert S. Brewer. “These were not victimless crimes.  This office will vigorously prosecute those who cavalierly steal the identities of honest citizens and compromise the integrity our financial institutions.”

“This plea is the result of successful investigative efforts between NCIS and our partner agencies,” said NCIS Southwest Field Office Special Agent in Charge Garrett Waugh. “Fedrick Emery used fraudulent credit cards to defraud U.S. Navy and U.S. Marine Corps Exchanges, and used the identities of numerous unsuspecting victims to obtain bank loans and purchase vehicles. NCIS appreciates the assistance of our partners in combating fraud that decreases Department of the Navy readiness and wastes taxpayer money.”

According to court documents, during the conspiracy Emery and his co-conspirators referred to what they were doing as “New Money.”  Emery flaunted his unearned wealth on Instagram, posting pictures of himself in the luxury automobiles he purchased using the identities of others, and with stacks of cash.  Defendant was discharged in absentia from the U.S. Navy under other than honorable conditions in October 2017. 

DEFENDANT                                                Case Number 18cr3230-JLS                                   

Fedrick Emery                                    Age: 23                                   San Diego, CA

SUMMARY OF CHARGES

Conspiracy – Title 18, U.S.C., Section 371

Maximum penalty: 5 years’ imprisonment and $250,000 fine

Aggravated Identity Theft – Title 18 U.S.C., Section 1028A

Penalty – Mandatory two years consecutive imprisonment, and $250,000 fine

AGENCY

Naval Criminal Investigative Service

United States Secret Service

El Cajon Police Department