14 DAY TRIAL // Eight individuals have been indicted in the Brooklyn federal court for conspiracy to commit mail fraud and wire fraud. The prosecutors claim that they illegally obtained wireless equipment amounting to $22 million by using stolen AT&T and T-Mobile customer information.
The complex scheme began in February 2005 and lasted until July this year. It involved abusing authorized access to the operators' databases by Gabe Beizem, 34, and Rohan Stewart, 34, the owners of two authorized phone dealers. The gang used the personal information obtained in this way to open additional phone lines and request new and replacement devices in the name of the unfortunate customers.
The mobile carriers charged the affected individuals and sent the equipment at their addresses. However, the identity thieves paid FedEx and DHL drivers Saul Serrano, 37, Ron Shealey, 36, and others to divert the shipments and wrongfully report them as successful. The gang sold the new devices to others for a consistent profit.
Faced with fraudulent charges on their bills, the targeted customers complained to the telecoms companies, who were eventually forced to absorb all costs that were estimated at an impressive $22 million. "The type of fraud alleged in the indictment strikes at the very heart of our modern digital economy and imposes substantial costs on commercial businesses. It is a serious problem that requires serious action," commented U.S. Attorney Benton Campbell for North Country Gazette.
The other four co-conspirators indicted in this case are Courtney Beckford, 49, Rawl Davis, 36, Lennox Lambert, 37 and Marsha Montayne, 28. All of them face maximum sentences of 20 years in prison, while Beizem, Stewart and Montayne can get an additional two years’ sentence each for aggravated identity theft.
According to The Register a spokesperson for AT&T noted that the company would offer free credit monitoring subscriptions for the affected customers. "As the investigation unfolded, AT&T put several additional security measures and practices in place to provide further protection of our customers' personal information. We continue to add security safeguards to protect customer data," he stressed.