Manhattan District Attorney Cyrus R. Vance, Jr., today announced indictments of 27 individuals in connection with “S3,” a credit card forgery and identity theft ring based in Brooklyn that compromised hundreds of bank accounts, and fraudulently purchased Apple products from stores around the country to resell for profit. Charges in the indictments include Grand Larceny in the Second Degree, Grand Larceny in the Third Degree, Grand Larceny in the Fourth Degree, Conspiracy in the Fourth Degree, Forgery in the Second Degree, and Criminal Possession of a Forged Instrument in the Second Degree.  The crimes charged in the two indictments total 57 counts on two separate conspiracies: 48 counts on the first conspiracy, which occurred between June 2008 and December 2010, and 9 counts on the second conspiracy, which occurred between September 2010 and December 2010.[1]

The defendants were the target of a joint investigation by the New York County District Attorney’s Office’s Cybercrime and Identity Theft Bureau and the United States Secret Service.  

“This case demonstrates the dangers of organized computer crime,” said District Attorney Vance. “Today, we have effectively dismantled a significant criminal operation that preyed upon innocent victims around the world. By working with our partners in law enforcement, we will continue to use all available tools to root out cybercrime in New York City and beyond.”

Brian G. Parr, Special Agent in Charge of the New York Field Office, U.S. Secret Service said: “This investigation highlights the threats posed to businesses and individuals by criminal enterprises engaged in cyberfraud and identity theft, which adversely impact local communities.  The Secret Service continues its commitment to combating these types of crimes by maintaining strategic alliances with local prosecutors in order to thwart these criminal schemes and bring the perpetrators to justice.”

According to documents filed in court and statements made on the record in court, beginning in June 2008, the defendants, who called themselves “S3,” obtained personal identifying information, such as the names and credit card account numbers, of identity theft victims. This information was purchased from online data traffickers via web-based portals, and the purchasers would store the stolen credit card information in shared email accounts, allowing several defendants to begin creating counterfeit credit cards.  The defendants then recruited individuals to act as “shoppers,” who entered stores armed with these manufactured cards containing the shoppers’ real names paired with stolen account information. The counterfeit credit cards were used to purchase goods for S3’s own use, or to resell for profit.

According to documents filed in court, the boss, SHAHEED BILAL, a/k/a “SHA,” was the leader of the first – and original – conspiracy. In May 2010, nearly two years after the ring began operating, BILAL was being held at Rikers Island on an unrelated charge.  Information obtained by the Manhattan District Attorney’s Office revealed that BILAL was directing the operation of S3 from inside jail by having his girlfriend, OPHELA ALLEYNE, a/k/a “PHILLY,” manage the day-to-day operations. BILAL provided ALLEYNE with instructions on how to purchase credit card numbers, manage shoppers, and forge credit cards. Following BILAL’s release from jail in December 2010, investigators identified that he was using a new email account, rightbackonit@yahoo.com, to purchase, receive and share stolen credit card data.

Furthermore, according to today’s charges, BILAL’s brothers - ALI BILAL, a/k/a “ACKII,” ISAAC BILAL, a/k/a “I.B.,” and RAHIM BILAL, a/k/a “MARLO,”
a/k/a “STARLO” – served as managers, or underbosses, for SHAHEED BILAL, by recruiting shoppers. These shoppers purchased fraudulently obtained electronic goods from Apple stores in Manhattan and around the country, including iPods, MacBooks, iPads, and gift cards. The retail stores they targeted were located in New York, Florida, Wisconsin, New Jersey, Connecticut, Alabama, Oregon, Indiana, Georgia, Nevada, Pennsylvania, Virginia and the District of Columbia. Once purchased, the goods were then sold for cash at below retail cost to several different individuals in Brooklyn acting as “fences.” In turn, the fences would then resell the illegally obtained goods at a profit.

According to documents filed in court, a shopper in BILAL’s operation, ANTHONY HARPER, a/k/a “ANT” and “DOLLA,” broke off from BILAL’s group to form his own ring, which ran in a similar fashion. The crimes that this ring is charged with committing constitute the second conspiracy, and are charged in a second, separate indictment.

The investigation into both conspiracies is ongoing. On February 1, 2010, in searches conducted as part of the arrest operation, investigators recovered three firearms, ammunition, and tools needed to manufacture credit cards. The District Attorney’s Office has also seized $300,000 in cash and bank account holdings from the group.

Assistant District Attorneys Elizabeth Roper and Jasmina H. Ahmetovic are handling the prosecution of this case under the supervision of Assistant District Attorney David Szuchman, Chief of the Cybercrime and Identity Theft Bureau; Assistant District Attorney Armand Durastanti, Chief of Trial Bureau 40; and Assistant District Attorney Patricia O’Connor, Deputy Chief of the Cybercrime and Identity Theft Bureau. Investigators Robert Muldoon, Erin Donovan and Zachary Greenwood of the District Attorney’s Investigation Bureau assisted in the investigation, under the supervision of John Bilich, Chief of the District Attorney’s Investigations Bureau. Cybercrime Analysts Matthew Gulinello and Jasmine Mucha and Senior Cybercrime Analyst Sarah Briglia also assisted.   

District Attorney Vance thanked Brian Parr, Special-Agent-in-Charge of the United States Secret Service New York Field Office; Paul Mahon, Assistant Special-Agent-in Charge of Investigations; C. Christine Fahrenback, Assistant to the Special Agent in Charge/Financial Institution Fraud; Lead Investigators Robert Kaatz and Kelly McGuinness; and Special Agent Jason Topman.  District Attorney Vance also thanked Daniel Wager, Director of the High Intensity Financial Crimes Area for the New York Region and Brian O’Connell, Intelligence Analyst.  

District Attorney Vance also thanked Apple, Inc., for its cooperation during this investigation.  

Defendant Information for Conspiracy 1:

SHAHEED BILAL, a/k/a “SHA,” D.O.B. 11/14/1982
Brooklyn, New York

OPHELIA ALLEYNE, a/k/a “PHILLY,” D.O.B. 8/13/1981
Brooklyn, New York

ALI BILAL, a/k/a “ACKII,” D.O.B. 6/4/1987
Brooklyn, New York

ISAAC BILAL, a/k/a “I.B.,” D.O.B. 5/28/1985
 Brooklyn, New York

RAHIM BILAL, a/k/a “MARLO,” a/k/a “STARLO,” D.O.B. 5/21/1989
Brooklyn, New York

MARCUS ARTIS, a/k/a “BLING,” D.O.B. 1/9/1988
Brooklyn, New York

JAMARA BENNETT, a/k/a “KILLZ,” D.O.B. 12/18/1983
Brooklyn, New York

SHANAYA BETHEA, a/k/a “NAYA,” D.O.B. 2/16/1990
Brooklyn, New York

GIL EINHORN, D.O.B. 5/17/1984
Brooklyn , New York

TRASHAWN FRAILS, a/k/a “SPOT,” D.O.B. 1/7/1987
Brooklyn, New York

DARNELL GIBBS, a/k/a “BUTTER LUV,” D.O.B. 7/4/1986
Brooklyn, New York

ANTHONY HARPER, a/k/a “ANT,” D.O.B. 3/19/1982
Brooklyn, New York

TSAIQUAN IRBY-BACON, D.O.B. 8/17/1987
Brooklyn, New York

TETEE MORRISON, D.O.B. 9/4/1987
Brooklyn, New York

ASHLEY PENNICOTT, D.O.B. 11/20/1987
Brooklyn, New York

SHADU WAGNER, D.O.B. 9/6/1987
Brooklyn, New York

Indictment 1 Charges:   
•    Grand Larceny in the Second Degree, a class C felony, 1 counts
•    Grand Larceny in the Third Degree, a class D felony, 4 counts
•    Grand Larceny in the Fourth Degree, a class E felony, 15 counts
•    Conspiracy in the Fourth Degree, a class E felony, 1 counts
•    Criminal Possession of a Forged Instrument in the Second Degree, a class D felony, 27 counts

Defendant Information for Conspiracy 2:

ANTHONY HARPER, a/k/a “ANT,” D.O.B. 3/19/1982
Brooklyn, New York
*Note: HARPER is charged in both Conspiracy 1 and 2.

HARVIN EIGNER, a/k/a “I.G.,” D.O.B. 1/8/1976
Brooklyn, New York

HASBA FLYNN-HAKIM, D.O.B. 8/4/1987
Queens, New York

TYESHA HALLS, D.O.B. 1/12/1990
Brooklyn, New York

BRIAN HANNA, D.O.B. 7/17/1968
Brooklyn, New York

DESJEUNER KNIGHT, a/k/a “FAT GIRL,” D.O.B. 9/19/1987
Brooklyn, New York

SHENEIK MCCALLUM, D.O.B. 4/11/1988
Brooklyn, New York

AHMAD MOHSEN, a/k/a “MIKE,” D.O.B. 3/27/1963
Brooklyn, New York

EDNA NIXON, a/k/a “NINA,” D.O.B. 9/29/1979
Brooklyn, New York

JOSHUA SIMON, a/k/a “DOG,” D.O.B. 2/23/1973
Brooklyn, New York

MALKIA WALKER, a/k/a “KIA,” D.O.B. 5/25/1971
Brooklyn, New York

Indictment 2 Charges:  
•    Grand Larceny in the Second Degree, a class C felony, 1 counts
•    Criminal Possession of a Forged Instrument in the Second Degree, a class D felony, 6 counts
•    Grand Larceny in the Fourth Degree, a class E felony, 1 counts
•    Conspiracy in the Fourth Degree, a class E felony, 1 counts

A class C felony is punishable by up to 15 years in prison, a class D felony is punishable by up to 7 years in prison and a class E felony is punishable by up to 4 years in prison.

[1]The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.