Credit card scam alleged at Joliet-area hotels

By Hal Dardick
Tribune staff reporter
Published November 2, 2006, 4:51 PM CST


Federal and local authorities today executed search warrants and seized computer equipment at seven Joliet-area hotels where employees are suspected of selling thousands of customers' credit card numbers.

The crackdown is the culmination of a four-month investigation targeting franchise owners, managers or employees at hotels in Joliet and Romeoville, said Pat Barry, a spokesman for the Will County Sheriff's Department.


A total of seven search warrants and 12 arrest warrants were executed by Will County sheriff's personnel, the FBI, the Joliet Police Department and the Romeoville Police Department, Barry said.

The probe targets two Holiday Inn Express locations in Joliet, one Ramada Inn in Joliet, two Super 8 locations in Joliet, a Budget Inn Express in Joliet and one Super 8 in Romeoville, according to Barry.

"Anyone who stayed there was a potential victim," Will County State's Atty. James Glasgow said this afternoon. "And it looks like it was open season."

Authorities said an informant purchased 150 credit card numbers from the hotels. The going rate was between $500 and $15,000 per credit card number.

"It is stunning how easily this informant was able to steal the financial identities of consumers across the country, simply by cultivating relationships in the hospitality industry," Will County State's Atty. James Glasgow said.

"From what we have learned here, this criminal scheme can be easily repeated anywhere in the country."

People who bought the credit card numbers also received the names on the cards and toll-free numbers to call to find out how much credit was available on each card, Barry said.

In some cases, those who bought the credit card numbers used them to purchase plasma TVs for the hotels, officials said.

At the Holiday Inn Express at 411 S. Larkin Ave., Joliet, officials this afternoon carried out eight computers and arrested the owner, John Rhee, 62, of the 8600 block of Timber Ridge Drive in Burr Ridge.

Rhee is one of 12 charged with multiple counts of identity theft, unlawful use of an account number with intent to defraud and computer fraud, all felonies.

Rhee denied he stole any credit card numbers.

"I did my best with my work," he said. "I'm not sure what happened here."

As of 4 p.m., ten of the 12 individuals charged in the warrants were in custody, officials said. Two were still at large.

The informant faces similar charges to those arrested today.

No employees from the corporate offices of any of the hotels are charged, according to Chuck Pelkie, a spokesman for the Will County state's attorney's office. hdardick@tribune.com



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