Gangmembers arrested in bank fraud
- Thread starter rastanaeskee
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SAN DIEGO - Authorities announced the break-up of a large bank fraud scheme in which street gang members bilked a San Diego credit union out of $500,000.
"Operation Bank Gig" marks the first time a violent street gang has been targeted for its involvement in complex bank fraud in California, authorities said.
After a 10-month investigation, 60 defendants were collectively charged with 347 felony counts, including conspiracy, grand theft, money laundering, forgery and burglary.
More than a dozen of those arrested are members of San Diego's Lincoln Park gang, and a few of the defendants are active military.
"The size, scope and sophistication of this operation show us that criminal street gangs in San Diego are expanding their criminal enterprise into white-collar crime," said District Attorney Bonnie Dumanis.
"As gangs move from street corner drug dealing and pimping into complex fraud, it's more important than ever that law enforcement from all levels continue to work together."
Gang members recruited acquaintances who had existing accounts at Navy Federal Credit Union and offered them a portion of the ill-gotten gains, authorities said.
The recruiters obtained the bank card and personal identification number from the account holder, deposited counterfeit checks into the account, then withdrew the cash before the credit union determined the checks were bogus.
The account holder was then instructed to report the card stolen when approached by credit union investigators. Most of the transactions took place at the Barona Casino.
Point-of-sale ATMs were used, which allow for larger withdrawals, authorities said.
"We see gangs as a cancer in society," says San Diego Police Chief William Lansdowne.
It isn't clear how much money the gang made off the scheme, but Lansdowne says they weren't shy to spend it, "they spent it rather lavishly and quickly, easy come easy go. There's no long-term financial plan in this, it was take it and use it."
The defendants are scheduled to be arraigned on Thursday. Some could face up to 13 years in prison if convicted of all charges.
Authorities said "Operation Bank Gig" was an unprecedented multi- agency operation involving the U.S. Secret Service; the San Diego Regional Fraud Task Force; San Diego Police Department gang detectives; San Diego District Attorney's Office investigators; U.S. Postal Inspection Service; Naval Criminal Investigative Service; Navy Federal Credit Union; and the California Attorney General's Office, which is jointly prosecuting the case with the District Attorney's Office.
"Operation Bank Gig" marks the first time a violent street gang has been targeted for its involvement in complex bank fraud in California, authorities said.
After a 10-month investigation, 60 defendants were collectively charged with 347 felony counts, including conspiracy, grand theft, money laundering, forgery and burglary.
More than a dozen of those arrested are members of San Diego's Lincoln Park gang, and a few of the defendants are active military.
"The size, scope and sophistication of this operation show us that criminal street gangs in San Diego are expanding their criminal enterprise into white-collar crime," said District Attorney Bonnie Dumanis.
"As gangs move from street corner drug dealing and pimping into complex fraud, it's more important than ever that law enforcement from all levels continue to work together."
Gang members recruited acquaintances who had existing accounts at Navy Federal Credit Union and offered them a portion of the ill-gotten gains, authorities said.
The recruiters obtained the bank card and personal identification number from the account holder, deposited counterfeit checks into the account, then withdrew the cash before the credit union determined the checks were bogus.
The account holder was then instructed to report the card stolen when approached by credit union investigators. Most of the transactions took place at the Barona Casino.
Point-of-sale ATMs were used, which allow for larger withdrawals, authorities said.
"We see gangs as a cancer in society," says San Diego Police Chief William Lansdowne.
It isn't clear how much money the gang made off the scheme, but Lansdowne says they weren't shy to spend it, "they spent it rather lavishly and quickly, easy come easy go. There's no long-term financial plan in this, it was take it and use it."
The defendants are scheduled to be arraigned on Thursday. Some could face up to 13 years in prison if convicted of all charges.
Authorities said "Operation Bank Gig" was an unprecedented multi- agency operation involving the U.S. Secret Service; the San Diego Regional Fraud Task Force; San Diego Police Department gang detectives; San Diego District Attorney's Office investigators; U.S. Postal Inspection Service; Naval Criminal Investigative Service; Navy Federal Credit Union; and the California Attorney General's Office, which is jointly prosecuting the case with the District Attorney's Office.
