Two Defendants Charged In Fraudulent Payment And Identity Theft Scheme

United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the arrest of PARIS BAKER and MICHAEL SULLIVAN.  BAKER and SULLIVAN are charged with a fraudulent scheme to initiate approximately $3.7 million in unauthorized debits of third-party bank accounts on behalf of fictitious shell entities that they incorporated in the names of identity theft victims.  BAKER was arrested this morning in Thousand Oaks, California and is expected to be presented in Los Angeles federal court this afternoon.  SULLIVAN was arrested in Calumet City, Illinois and was presented in Chicago federal court this morning.

“Our Office is deeply committed to rooting out fraud in all of its forms,” said U.S. Attorney Jamie McDonald.  “Paris Baker and Michael Sullivan allegedly created businesses that existed only on paper, using stolen identities to give their scheme the appearance of legitimacy while initiating millions of dollars in unauthorized bank transactions.  Behind these fictitious companies was an elaborate effort to steal from unsuspecting victims and exploit the financial systems designed to facilitate legitimate commerce.  Today, the defendants face federal charges for allegedly turning those systems into instruments for fraud.” 

“Baker and Sullivan allegedly stole millions of dollars over the course of a five-year wire fraud scheme,” said FBI Assistant Director in Charge James C. Barnacle, Jr.  “The FBI takes fraud seriously and works tirelessly to follow the money and identify those responsible.  Let this case serve as a warning to others: pursuing illegal profits is not worth the consequences.”

As alleged in the Complaint:(1) 

Between approximately 2019 and 2024, BAKER, SULLIVAN and others conducted a fraudulent payment scheme, as part of which they incorporated shell entities in the names of victims of identity theft.  They then created accounts on behalf of the shell entities with at least three payment processors, one of which was based in Rockland County, New York, and initiated unauthorized debits of third parties’ bank accounts, purportedly in consideration for services rendered by the shell companies. 

Hundreds of thousands of dollars’ worth of unauthorized transactions initiated by the shell entities were cleared by the payment processors, who transferred funds into bank accounts controlled by the shell entities.  Those funds were subsequently spent by BAKER, SULLIVAN, and others involved in the scheme, or were transferred to other accounts under their control.

BAKER, SULLIVAN, and others involved in the scheme attempted to defraud victims of at least approximately $3.7 million and successfully procured at least approximately $1.3 million in fraudulent proceeds through the scheme.  They employed no less than six fictitious shell entities in connection with their fraudulent scheme: (i) Sebi Property Management; (ii) Sada Property Group; (iii) Vollen Medical Center; (iv) Acclimate Property Management; (v) Majani Wellness Center; and (vi) Fruitive Medical & Rehab Center.  None of these entities conducted any legitimate business or had any genuine customers. 

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BAKER, 38, of Chicago, Illinois, and SULLIVAN, 50, of Calumet City, Illinois, are each charged with wire fraud and conspiracy to commit wire fraud, which carry a maximum sentence of 20 years in prison; access device fraud and conspiracy to commit access device fraud, which carry a maximum sentence of 15 years in prison; conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; and aggravated identity theft, which carries a mandatory minimum sentence of two years in prison.

The statutory minimum and maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. 

Mr. McDonald praised the outstanding investigative efforts of the FBI’s New York Field Office, Westchester County Resident Agency.  Mr. McDonald also thanked the U.S. Attorney’s Offices for the Northern District of Illinois and the Central District of California, the FBI’s Chicago and Los Angeles Field Offices, including the Chicago – South RA2 and Los Angeles – Ventura County resident agencies, the Office of the Attorney General for Illinois, the Palos Heights Police Department, and the Chicago Police Department for their assistance in securing BAKER’s and SULLIVAN’s arrest.

The case is being prosecuted by the Office’s White Plains Division.  Assistant U.S. Attorneys Ioannis Drivas and Daniel Listwa are in charge of the prosecution.

The charges in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

1. ^

    As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth in this release constitute only allegations, and every fact described should be treated as an allegation.