Two Charged in New York With Using Stolen Identities and Shell Companies to Initiate $3.7 Million in Unauthorized Debits
NEW YORK, New York — The U.S. Attorney's Office for the Southern District of New York announced on November 10 the arrests of Paris Baker and Michael Sullivan. They are charged with a fraudulent scheme to initiate approximately $3.7 million in unauthorized debits of third-party bank accounts on behalf of fictitious shell entities that they incorporated in the names of identity theft victims. U.S. Attorney Jamie McDonald and James C. Barnacle, Jr., Assistant Director in Charge of the Federal Bureau of Investigation (FBI), announced the arrests.
As alleged in the Complaint, between approximately 2019 and 2024, Baker, Sullivan and others incorporated shell entities in the names of victims of identity theft. They then created accounts on behalf of the shell entities with at least three payment processors, one of which was based in Rockland County, New York, and initiated unauthorized debits of third parties' bank accounts, purportedly in consideration for services rendered by the shell companies.
Hundreds of thousands of dollars' worth of unauthorized transactions initiated by the shell entities were cleared by the payment processors, who transferred funds into bank accounts controlled by the shell entities. Those funds were subsequently spent by Baker, Sullivan and others involved in the scheme, or were transferred to other accounts under their control. They attempted to defraud victims of at least approximately $3.7 million and successfully procured at least approximately $1.3 million in fraudulent proceeds, using no fewer than six fictitious shell entities, none of which conducted any legitimate business or had any genuine customers.
Baker, 38, of Chicago, Illinois, was arrested in Thousand Oaks, California, and was expected to be presented in Los Angeles federal court. Sullivan, 50, of Calumet City, Illinois, was arrested in Calumet City and was presented in Chicago federal court.
Each defendant is charged with wire fraud and conspiracy to commit wire fraud, which carry a maximum sentence of 20 years in prison; access device fraud and conspiracy to commit access device fraud, which carry a maximum sentence of 15 years in prison; conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; and aggravated identity theft, which carries a mandatory minimum sentence of two years in prison. The case is being prosecuted by the Office's White Plains Division. The charges in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
(Source: U.S. Department of Justice)
Source: U.S. Department of Justice
Published by GSM · USA (original Chinese edition)
Photo: 图：美国司法部总部大楼入口（联邦核心机构固定图库）。本案由司法部纽约南区联邦检察官办公室起诉。 / Image: U.S. Department of Justice headquarters entrance (federal core asset pack). The case was prosecuted by the U.S. Attorney's Office for the Southern District of New York.
