Two Men Charged in $3.7 Million Fraudulent Payment and Identity Theft Scheme; One Arrested in Thousand Oaks, California
NEW YORK — The U.S. Department of Justice announced on November 10 that Paris Baker and Michael Sullivan have been charged with running a five-year scheme that used shell companies incorporated in the names of identity theft victims to initiate unauthorized debits from third-party bank accounts, attempting to defraud victims of approximately $3.7 million and obtaining at least approximately $1.3 million. Baker was arrested that morning in Thousand Oaks, California, and was expected to be presented in Los Angeles federal court that afternoon; Sullivan was arrested in Calumet City, Illinois, and was presented in Chicago federal court that morning.
United States Attorney for the Southern District of New York Jamie McDonald and FBI Assistant Director in Charge James C. Barnacle, Jr. announced the arrests. McDonald said the two allegedly created businesses that existed only on paper, using stolen identities to give their scheme the appearance of legitimacy while initiating millions of dollars in unauthorized bank transactions. Barnacle said the pair allegedly stole millions over the course of a five-year wire fraud scheme and that the FBI works to follow the money.
According to the complaint, between approximately 2019 and 2024, Baker, Sullivan and others incorporated shell entities in the names of identity theft victims and used no fewer than six fictitious companies, including Sebi Property Management, Sada Property Group, Vollen Medical Center, Acclimate Property Management, Majani Wellness Center and Fruitive Medical & Rehab Center. None of the entities conducted any legitimate business or had any genuine customers, prosecutors said.
The complaint alleges the defendants created accounts for the shell entities with at least three payment processors, one based in Rockland County, New York, and initiated unauthorized debits of third parties' bank accounts, purportedly in payment for services rendered by the shell companies. Processors cleared hundreds of thousands of dollars in unauthorized transactions into bank accounts controlled by the shell entities, and the funds were then spent by the defendants and others or moved to other accounts under their control.
Baker, 38, of Chicago, Illinois, and Sullivan, 50, of Calumet City, Illinois, are each charged with wire fraud and conspiracy to commit wire fraud, carrying a maximum of 20 years in prison; access device fraud and conspiracy to commit access device fraud, carrying a maximum of 15 years; conspiracy to commit money laundering, carrying a maximum of 20 years; and aggravated identity theft, carrying a mandatory minimum of two years. The case is being prosecuted by the White Plains Division of the U.S. Attorney's Office for the Southern District of New York, and the FBI's New York Field Office, Westchester County Resident Agency, led the investigation, with assistance from the U.S. Attorney's Offices for the Central District of California and the Northern District of Illinois and the FBI's Chicago and Los Angeles field offices, among others.
The Justice Department noted that 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)
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