Aug 282014

Mike Hughlett provides an update:

Dairy Queen has become the latest victim of computer hackers bent on pilfering customers’ credit and debit card information.

The Edina-based ice cream and fast-food chain confirmed Wednesday that “customer data at a limited number of stores may be at risk.”

The company didn’t disclose how many customers or how many stores were affected.

“We are gathering information from a number of sources, including law enforcement, credit card companies and processors,” Dairy Queen said in a statement.

Read more on the Star Tribune.

Aug 262014

Emma Youle reports:

The personal information of more than 47,000 people living in Brent has been put up for sale on the dark web, according to new data revealing the startling scale of online identity fraud.


C6 Intelligence, which works with leading financial and retail companies, has penetrated more than 50 criminal websites and has 421 million records globally of stolen data over the last five years.


The company has broken down the records by London postcode for the Times.

Read more on Brent & Kilburn Times.

Aug 252014

Ben Dunsmoor reports:

A former University of South Dakota football player involved in a tax fraud scheme has pleaded guilty.

Christopher Lundy, 23, pleaded guilty to one count of aggravated identity theft in federal court Monday morning.

Lundy is one of nearly a dozen people tied to a tax fraud ring that involved several USD students. The group stole social security numbers and birth dates and filed bogus tax documents. Members of the group would then collect the tax return checks. Authorities say about a half million dollars was paid out before the ring was discovered.

Read more on KELOLAND.

Aug 222014

Hattiesburg, Miss – Former Mississippi Department of Public Safety employee Yolanda Jean Perkins, 48, of Laurel, Lorena Gomez, 33, of Laurel, and Jose Martel Rivera, 32, an illegal alien from Mexico, all pled guilty in federal court on August 18, 2014, to conspiracy to commit identity theft, announced U.S. Attorney Gregory K. Davis and Raymond Parmer, Special Agent in Charge of Homeland Security Investigations.

The conspiracy involved the sale by Gomez and Rivera of authentic Texas birth certificates with matching social security cards to illegal aliens, and the subsequent purchase of Mississippi drivers’ licenses and state IDs, with the assistance of Perkins who worked at the Laurel driver’s license bureau.

The defendants will be sentenced by U.S. District Judge Keith Starrett on October 27, 2014. The maximum penalty for conspiracy is 15 years in prison and $250,000 fine.

This case is the result of an investigation by Homeland Security Investigations and the Mississippi Bureau of Investigation. Assistant U.S. Attorney Annette Williams is prosecuting the case.

SOURCE: U.S. Attorney’s Office, Southern District of Mississippi

Aug 222014

I missed this one when it first appeared on July 29th, but it is an insider breach of note:

CONCORD, NEW HAMPSHIRE – Joseph Cespedes, 37, formerly a police officer in Manchester, New Hampshire, pleaded guilty in United States District Court for the District of New Hampshire to misprision of a felony, announced United States Attorney John P. Kacavas.

Under federal law, it is unlawful for anyone who has knowledge of the commission of a federal felony to conceal the crime and withhold information about it from federal authorities.

This investigation began in 2011, when the Department of Homeland Security – Homeland Security Investigations (HSI) learned that Cespedes – a Manchester police officer at the time – was associating with an individual in Lawrence, Massachusetts, who was the target of a separate drug-related investigation. Federal agents also discovered that the targeted drug dealer enlisted Cespedes to run criminal records checks on certain stolen identities to determine whether they were clear of outstanding arrest warrants. Cespedes ran the criminal records checks through unwitting Manchester Police Department dispatchers. When those criminal records checks came back negative, Cespedes sold that information to the drug dealer for $350.00 and a small quantity of cocaine. Rather than report the drug dealer’s activities to the proper authorities, Cespedes affirmatively concealed that felonious conduct.

HSI shared the results of its investigation with the FBI, who, in turn, shared it with the Manchester Police Department. Within days, Cespedes preemptively resigned from the Manchester Police Department, ostensibly for reasons unrelated to this investigation. Despite his resignation, the investigation into his activities continued. During a subsequent interview conducted by federal agents and Manchester police, Cespedes admitted his association with the drug dealer and his illegal conduct on the drug dealer’s behalf.

United States Attorney John P. Kacavas said, “I want to commend HSI, the FBI and the Manchester Police Department for their joint efforts in bringing this rogue former police officer to justice. His illegal conduct is a betrayal not only to the community he was sworn to serve but also to the officers of the Manchester Police Department with whom he served. His guilty plea today is a testament to the determination of law enforcement and this office to find, deter, and punish criminals regardless of their status or occupation.”

“I would like to congratulate my special agents for following the evidence wherever it lead, but I would equally like to commend the Manchester Police Department for their swift and decisive action,” said special agent in charge of HSI Boston, Bruce Foucart. “It’s always difficult when the actions of a single officer stains the badge, honor and integrity of all the other brave men and women who choose to put their lives on the line in order to uphold the law. “

Cespedes faces up to three years in federal prison and a possible fine of $250,000.00. He is scheduled to be sentenced on November 4, 2014.

The case was investigated by the U.S. Department of Homeland Security-Homeland Security Investigations, the Federal Bureau of Investigation, and the Manchester Police Department. The case is being prosecuted by Assistant United States Attorney Robert Kinsella.

SOURCE: U.S. Attorney’s Office, District of New Hampshire

Aug 222014

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Amos Rojas, Jr., U.S. Marshal, U.S. Marshals Service (USMS), announce the indictment of seven individuals for their roles in a stolen identity tax refund fraud scheme. The indictment charges defendants Lukner Blanc, 31, of Royal Palm Beach, Frank Fleuzinord, 29, of Cape Coral, Jean Juste, a/k/a “Junior” or “Shorty,” 24, of West Palm Beach, Benoit Placide, a/k/a “Snow” or “Mario,” 26, of West Palm Beach, Shelda Phadael, 28, of Lake Worth, Marie Claude, 25, of Lantana, and Marie Demesyeux, 29, of Lake Worth. Six of the defendants have been arrested. Fleuzinord remains at-large.

Defendants Phadael, Claude, and Demesyeux were arraigned today before United States Magistrate Judge Dave Lee Brannon. All three of the defendants pled not guilty. A trial date has not yet been set. Placide’s arraignment is scheduled for August 26, 2014, Juste’s arraignment is scheduled for August 27, 2014, and Blanc’s arraignment is scheduled for August 28, 2014.

All defendants are charged with one count of conspiracy to receive, conceal and retain monies stolen from the United States, in violation of Title 18, United States Code, Section 371.

In addition, Defendant Blanc is charged with three counts of theft of government money, in violation of Title 18, United States Code, Section 641, nine counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), and five counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Defendant Fleuzinord is charged with two counts of aggravated identity theft. Defendant Juste was charged with one count of theft of government money, five counts of aggravated identity theft, and five counts of wire fraud. Defendant Placide is charged with five counts of aggravated identity theft and five counts of wire fraud. Defendant Phadael is charged with one count of theft of government money.

Defendants Claude and Demesyeux are each charged with one count of perjury, in violation of Title 18, United States Code, Section 1623(a), for making a false statement while testifying under oath before a Federal Grand Jury.

According to court documents, the defendants stole the identities of real persons (names, dates of birth, and Social Security numbers) and used the information to file fraudulent income tax returns online to the IRS. The defendants opened personal bank accounts and purchased debit cards that were utilized to receive the fraudulent income tax refunds. After the fraudulent refunds were sent by wire to the bank accounts and debit cards, the defendants and their co-conspirators withdrew the funds at automatic teller machines (ATMs) and point of sale electronic terminals at various retail establishments.

If convicted, the defendants face a maximum of five years in prison for the conspiracy charge, a maximum of ten years in prison for the theft of government money charge, a mandatory term of two years in prison for the aggravated identity theft charge, a maximum of twenty years in prison for the wire fraud charge, and a maximum of five years in prison for the perjury charge.

Mr. Ferrer commended the investigative efforts of IRS-CI and the USMS Regional Fugitive Task Force. This case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.

An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty.

SOURCE: U.S. Attorney’s Office, Southern District of Florida