One of the leaders in an identity-theft ring that stole the credit card numbers of hundreds of D.C.-area consumers has pleaded guilty and the other is scheduled to do so on Monday. William Martin and Usman Muhammed were charged in July with running a card-skimming ring that stole credit card numbers, re-encoded those numbers on credit and gift cards and used the cards to buy merchandise and additional gift cards at stores in Virginia, Maryland and Pennsylvania.
They also recruited and paid “runners” to use the re-encoded credit and gift cards to buy merchandise and return previously purchased items for cash, according to court records.
Three other men have also been charged with working with Martin and Muhammed.
Muhammed pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft earlier this month. A plea hearing for Martin is scheduled for Monday in federal court in Alexandria.
Court records don’t give totals of how many credit card numbers ring members stole or how many fraudulent purchases were made. But some details provided show the ring had a broad scope, affecting hundreds of consumers and purchases.
The ring operated from at least January 2010 until June 2011, according to an indictment.
A single restaurant server who swiped customers’ cards after they paid for their meals obtained about 100 credit card numbers every four to six weeks during that time, the indictment says.
The group made more than 1,000 transactions at area stores using skimmed credit cards, according to Muhammed’s plea agreement. An unnamed informant who worked as a “runner” in the scheme fraudulently returned nearly $25,000 in merchandise to just one store, Nordstrom, according to court documents.
And between Jan. 26 and Feb. 8, 2010, credit card numbers on cards Martin surrendered when he was questioned at an Arlington Macy’s were used to make $5,875 in fraudulent purchases, plus $811 in attempted purchases, the documents say.
Two of the other men charged in the scheme, Raoul Lycorish and Anthony Thomas pleaded guilty last month.
The case against the final defendant, Olubunmi Komolafe, is still pending.
