Released: June 12, 2007

Data theft leads to money-laundering scam

Source: Jon Swartz and Byron Acohido, USA Today

ll, 19-year-old Irving Escobar crisscrossed northern and central Florida using counterfeit credit cards to buy stacks of $400 gift cards from Wal-Mart stores, cashing them in to buy TVs, PCs and jewelry from Wal-Mart subsidiary Sam’s Clubs in south Florida.

The scam was easy money: Escobar and several Miami-based accomplices traveled in rental cars to the state’s Wal-Mart stores, according to a criminal complaint by the Florida Department of Law Enforcement.

With credit cards supplied by an unnamed recruiter, they bought gift cards in $400 increments — just below the $500 limit that requires a manager’s approval. At one store, they hauled out 60 $400 gift cards.

Back in Miami, they went on extravagant shopping sprees. In one, Escobar purchased $112,000 in goods with gift cards. Authorities estimate the group acquired $1 million in goods.

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