14 DAY TRIAL // 53-year-old Tahir Lodhi of Hicksville, New York, has admitted to being the leader of a credit card fraud ring that used over 25,000 fraudulent payment cards in a scheme that caused losses of over $200 million (€150 million).
According to court documents, the man and his co-conspirators fabricated over 7,000 false identities to obtain the large number of credit cards. To make sure they can use them to the maximum, they made sure their associated credit reports looked good.
The crooks created dozens of bogus companies, but they also relied on complicit businesses to extract money from the fraudulent cards.
The enormous profits they made were spent on luxury automobiles, spa treatments, electronics, clothing, and gold. Investigators also found large piles of cash. In addition, part of the proceeds went into funding the criminal enterprise.
Lodhi is one of the 18 individuals charged by US authorities back in February 2013.
He now faces up to 30 years in prison and a fine of $1 million (€800,000), or twice the gain or loss caused by the offense. Sentencing is scheduled for October 1, 2013.
“Today’s admission of guilt by Tahir Lodhi brings to justice a leader of one of the biggest credit card fraud schemes ever charged by the United States,” commented US Attorney Paul J. Fishman.
“This type of fraud increases the costs of doing business for every American consumer, every day. Lodhi hurt not only the credit card issuers, but everyone who pays increased interest rates and fees because of the money sucked out of the system by criminals.”
“The criminal enterprise under Mr. Lodhi’s direction took advantage of the system and the good faith of banks and credit lenders they defrauded to the tune of hundreds of millions of dollars,” said Aaron T. Ford, FBI Special Agent in Charge, Newark.
“In doing so, they took advantage of the American public and legitimate users of the banking industry so that they and their families could live a lavish lifestyle.”