November 29, 2008


Feds crack global ID-theft ring that raided home equity

Brian KrebsWashington

WASHINGTON – Federal authorities this week announced a series of arrests and convictions in connection with a global identity theft ring that stole millions of dollars by hijacking home-equity lines of credit issued to thousands of consumers.

On Monday, state and federal law enforcement officials arrested four men who were part of a group that allegedly combined high-tech equipment with old-fashioned con-artistry to drain home-equity lines.

According to charging documents unsealed this week in New Jersey’s U.S. District Court, the men and four others arrested earlier this year tricked multiple banks and credit unions into wiring more than $2.5 million from home-equity lines to accounts controlled by members of a fraud ring in Canada, China, Japan, Vietnam and South Korea, among other countries.

On Nov. 20, three people authorities say were connected to the New Jersey gang pleaded guilty in the U.S. District Court for the Eastern District of Virginia to conspiracy to commit bank fraud and related charges. Officials say they stole at least $10 million through home-equity scams.

The cases highlight what the FBI calls an “emerging schemeâ€