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DISTRICT ATTORNEY - NEW YORK COUNTY |
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NEWS RELEASE |
Contact:
Alicia Maxey Greene |
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Manhattan District Attorney Robert M. Morgenthau announced today the indictment of 18 individuals for operating an identity theft and bank fraud scheme, involving hundreds of victims, thousands of counterfeit checks and numerous commercial banks in Manhattan. The defendants charged in this 227-count indictment are JASPER GRAYSON, a/k/a “Lyte,” JAMES MALLOY, a/k/a “Sal” and a/k/a “Sah,” LAMOTT MATTHEWS, a/k/a “L,” ALLAHSON CLAY, a/k/a “Reefy,” ALBERT PAULIN, a/k/a “AB,” LANCE PAULIN, a/k/a “LA,” ALVIN JOSEPH, a/k/a “Scooter,, EDWARD JOHNSON, JR., a/k/a “Big Mike,” LARRY GARCIA, a/k/a “Spanish Larry,” RAYMOND PENN, a/k/a “Charlie,” RAVEN MOSES, SHEENA POINDEXTER, RENECE RAZOR, ILAURA WALKER, KEISHA POLONIO, CHRISTOPHER DEBOER, TAUHEED MITCHELL and KELLY SNIDER. The crimes charged in the indictment occurred between October 1, 2007 and February 10, 2009. The investigation leading to today’s indictment revealed that the defendants obtained personal and bank account information belonging to 500 identity theft victims and used it primarily to manufacture thousands of counterfeit checks. By fraudulently cashing and depositing the counterfeit checks, the defendants stole over $1.4 million from one bank’s accounts and substantial additional sums from other banks. Victims of this scam included private individuals, corporations, religious institutions, hospitals, and schools, as well as city and state government agencies. The nine-month investigation was a joint effort by the Identity Theft Unit of the District Attorney’s Office and the Special Frauds Squad of the New York City Police Department, which began in mid-2008 when hundreds of counterfeit checks, using a range of corporate checking accounts, signatures and logos, were cashed at various commercial banks and check-cashing stores in Manhattan. The investigation revealed that starting as early as December 2007, JASPER GRAYSON, a/k/a “Lyte,” and JAMES MALLOY, a/k/a “Sal” and a/k/a “Sah,” organized and oversaw this criminal operation from their apartments in the Bronx by collecting and storing personal and bank account information to be used to produce counterfeit checks. The defendants regularly acquired the necessary data to generate counterfeit checks with the help of bank employees recruited to participate in the operation. These employees, often tellers, had access both to the banks’ computer systems and to large numbers of valid checks processed during legitimate customer transactions. In return for cash payments, the recruited tellers photocopied valid customer checks and printed out copies of customer profiles, which contained the customers’ names, addresses, social security numbers, bank account numbers and account balances. RENECE RAZOR, a former teller at a JP Morgan Chase Bank branch in Manhattan, ILAURA WALKER, a former teller at a TD Bank branch in Manhattan, and KEISHA POLONIO, a former teller at an HSBC Bank branch in the Bronx, all obtained the personal identifying information of identify theft victims and provided the details to other members of the conspiracy. Other tellers connected with this group, working at various banks, have already been charged in separate indictments. The investigation continues into additional bank employees working at different banks in Manhattan, who are known to have both compromised customers’ accounts and made unauthorized money transfers under the direction of members of this group of defendants. The defendants also obtained bank account information from individuals whom they paid for copies of their legitimate paychecks. In this manner, the conspiracy victimized the employers who issued the original payroll checks. Once members of the group acquired stolen personal and account information, it was given to the check makers, JASPER GRAYSON, a/k/a/ “Lyte” and JAMES MALLOY, a/k/a “Sal” and a/k/a “Sah,” and or one of their co-conspirators. Other members of the conspiracy, known as “recruiters,” such as defendants LAMOTT MATTHEWS, a/k/a “L,” ALLAHSON CLAY, a/k/a “Reefy,” ALBERT PAULIN, a/k/a “AB,” LANCE PAULIN, a/k/a “LA,” ALVIN JOSEPH, a/k/a “Scooter,” EDWARD JOHNSON, JR., a/k/a “Big Mike,” LARRY GARCIA, a/k/a “Spanish Larry,” RAYMOND PENN, a/k/a “Charlie,” RAVEN MOSES and SHEENA POINDEXTER, had the role of finding individuals who would agree to enter banks and cash or deposit the counterfeit checks. The defendants called these check cashers “soldiers.” Once a “soldier” was hired, the recruiter would provide the soldier’s real name and address to defendants GRAYSON or MALLOY so that counterfeit checks could be produced naming the soldier as payee. GRAYSON or MALLOY would create the checks using specialized computer software, scanners, printers, check stock, magnetic ink and company logos found on the Internet. When the counterfeit checks were ready, the recruiter typically would accompany the soldiers to bank branches in Manhattan to supervise the cashing or depositing of the checks. Money fraudulently obtained in this manner was split among the participants, with GRAYSON and MALLOY receiving the largest share and the remainder split between the recruiters and the soldiers. During the same time period, defendant LAMOTT MATTHEWS and other members of the group used stolen customer account information to organize the withdrawal or transfer of funds from the customers’ accounts. Defendants CHRISTOPHER DEBOER, TAUHEED MITCHELL and KELLY SNIDER assisted in these frauds by withdrawing large quantities of stolen money. While the group targeted virtually every financial institution with a retail presence in Manhattan, this indictment focuses on their activities at four banks – JP Morgan Chase, TD/Commerce, Wachovia and HSBC. As a result of JP Morgan Chase’s cooperation with law enforcement, the investigation revealed fraud against the bank exceeding $1,446,000. To date, the other three banks’ preliminary investigation currently has exposed substantial fraud at each institution. Some of the other financial institutions affected by this group’s criminal activities are Bank of America, Citibank, Capitol One Bank, Washington Mutual Bank, EAB Bank, Banco Popular, Amalgamated Bank, M & T Bank, Sovereign Bank, First National Bank, United Bank, Citizens Bank, and Fleet Bank. The extent of the theft from these institutions is still under investigation. In February 2009, search warrants obtained by the District Attorney’s Office were executed at five locations in Bronx County known to be connected to these defendants and used to orchestrate their conspiracy. Immediately before the search warrants were executed defendants GRAYSON and MALLOY were arrested in a car outside one of the targeted locations. Both men were in possession of laptop computers. GRAYSON’s laptop, which was plugged into the car’s cigarette lighter and also connected to a printer, contained check-making software, information on over 286 bank accounts, templates of counterfeit checks which had been cashed at various banks, and the names and addresses of over 950 check cashers (“soldiers”). MALLOY’s laptop contained check-making software, stolen bank account information, copies of stolen customer profiles from banks, and hundreds of corporate logos and signatures, which matched counterfeit checks cashed in Manhattan and throughout the New York City metropolitan area. Inside two of the locations targeted in the search warrant, occupied by GRAYSON and MALLOY respectively, a desktop computer, blank check stock, stolen customer profiles from various banks, payroll stubs, copies of legitimate checks, hundreds of counterfeit checks, ledgers with names of soldiers and amounts stolen on various dates, check-making software, fake state identification cards and credit cards issued in the names of identity theft victims were recovered. Members of the group called GRAYSON’s apartment “The Lab.” The computers seized and evidence recovered inside the various target locations revealed that the group cashed or deposited at least 1,017 counterfeit checks at Manhattan financial institutions, drawn on 350 checking accounts. The compromised accounts included those of companies such as: Bed, Bath and Beyond, Center for Employment Opportunities, SCAN New York, Equinox Fitness Club, Casino Development Group, Harlem Children’s Zone, Diane Von Furstenberg, Liberty Mutual, Madison Square Garden, New York School of Interior Design, Royal Home Care, The Mount Sinai School of Medicine, Visiting Nurse Service of New York, First Hungarian Congregation Ohab Zedek, St. John the Cathedral, Our Lady of Mt. Carmel, Century 21 Department Stores. The accounts of several city and state agencies also were compromised, such as the New York City Police Department’s Bronx Property Clerk, the Police Relief Fund, the New York City Board of Education, the New York City Department of Finance, the New York City Housing Authority, and the New York City Transit Authority. In addition, several hospitals were victimized, including Bronx Lebanon Hospital, Montefiore Medical Center, Peninsula Hospital Center and The Mount Sinai Hospital. A number of private individuals were also among the group’s victims. All of the defendants have been charged with Conspiracy in the Fourth Degree and Scheme to Defraud in the First Degree. Defendants JASPER GRAYSON, JAMES MALLOY, LAMOTT MATTHEWS, ALLAHSON CLAY, ALBERT PAULIN, LANCE PAULIN, ALVIN JOSEPH, EDWARD JOHNSON, JR., LARRY GARCIA, RAYMOND PENN, RAVEN MOSES, SHEENA POINDEXTER, CHRISTOPHER DEBOER, TAUHEED MITCHELL and KELLY SNIDER are each charged with Grand Larceny in the First Degree. Defendants JASPER GRAYSON and JAMES MALLOY are each charged with Unlawful Possession of Personal Identification Information in the First Degree. Defendants JASPER GRAYSON, JAMES MALLOY, LAMOTT MATTHEWS, ALLAHSON CLAY, ALBERT PAULIN, LANCE PAULIN, ALVIN JOSEPH, EDWARD JOHNSON, JR., LARRY GARCIA, RAYMOND PENN, RAVEN MOSES, SHEENA POINDEXTER, and ILAURA WALKER are each charged with Grand Larceny in the Third Degree, Identity Theft in the First Degree, Identity Theft in the Second Degree and Criminal Possession of a Forged Instrument in the Second Degree. Defendant KEISHA POLONIO is charged with Grand Larceny in the Third Degree. Grand Larceny in the First Degree is a class B felony which is punishable by up to 25 years in prison. Identity Theft in the First Degree, Grand Larceny in the Third Degree, Unlawful Possession of Personal Identification Information in the First Degree, and Criminal Possession of a Forged Instrument in the Second Degree are class D felonies which are punishable by up to seven years in prison. Conspiracy in the Fourth Degree, Scheme to Defraud in the First Degree and Identity Theft in the Second Degree are class E felonies which are punishable by up to four years in prison. Mr. Morgenthau thanked the Special Frauds Squad of the New York City Police Department and Detective Robert Fitzgibbons, who was the lead detective of this investigation, and the New York City Department of Investigation Commission Rose Gill Hearn and her staff. Mr. Morgenthau also thanked JP Morgan Chase Bank for their assistance with this investigation, particularly Karen Kelly, Assistant Vice President of Global Security & Investigations. He also thanked TD Bank, HSBC Bank, Wachovia Bank, Washington Mutual Bank, and JP Morgan Chase Bank’s credit card division. Assistant District Attorney Beth Potashnick presented the case to the Grand Jury, under the supervision of Assistant District Attorney Antonia Merzon, Chief of the Identity Theft Unit. Assistant District Attorney Jeremy Glickman assisted with the prosecution. Investigative Analysts Nicolette Endara and Sarah Briglia assisted in the investigation. The District Attorney’s Detective Squad also assisted in the investigation. Defendant Information: JASPER GRAYSON, 9/19/1983 JAMES MALLOY, 3/4/1983 LAMOTT MATTHEWS, 2/4/1988 ALLAHSON CLAY, 4/13/1988 ALBERT PAULIN, 7/24/1986 LANCE PAULIN, 8/29/81 ALVIN JOSEPH, 10/31/1983 EDWARD JOHNSON JR., 1/3/1982 LARRY GARCIA, 2/4/1988 RAYMOND PENN, 11/10/1983 RAVEN MOSES, 9/15/1982 SHEENA POINDEXTER, 7/8/1983 RENECE RAZOR, 9/21/1983 ILAURA WALKER, 8/11/1987 KEISHA POLONIO, 7/22/1978 CHRISTOPHER DEBOER, 8/9/1979 TAUHEED MITCHELL, 5/17/1985 KELLY SNIDER, 12/29/1986 ###
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