More Identity Theft Arrests
03/05/10 MRC/AP
The total number of arrests in connection with a check fraud and identity theft ring has risen to 109 with the indictment of 27 more people.
Those 27 indictments, which were handed down Wednesday, are the “finishing touches” on a joint three-year investigation by the U.S. Secret Service Electronic Crimes Task Force and Louisville Metro Police, according to Special Agent Paul Johnson, head of the Secret Service’s Louisville field office.
The alleged leaders of the ring are Anthony and Clarence Potter, Michael Barbee, Stefan Harvey and Kenneth Edwards, all of Louisville. They were indicted on federal charges in April of last year, and 56 more individuals were arrested in January.
The five men, all in their 30s and 40s, have been charged with multiple counts of counterfeit securities fraud, aggravated identity theft and wire fraud, Johnson said. The other 104 people have been charged with trafficking in stolen identities, possession of stolen mail material, engaging in organized crime and theft by deception.
Most of those charges carry a maximum of five to 10 years in prison.
He said the crime ring cost area businesses and banks about $500,000, but authorities expect that amount to increase “once the dust settles on everything.”
Johnson said 23 banks and 62 businesses, including nonprofits, were affected in Louisville and Southern Indiana and more than 50 people had their identities stolen.
The ring leaders allegedly recruited men and women to cash fake checks and purchase merchandise, Johnson said, but they also created false federal income tax returns for refunds and resold some of the merchandise.
The investigation began in March 2007 after investigators received a tip from BB&T about a suspicious $300 check, but Johnson said authorities believe the operation began in 2005.
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