Thursday, June 22, 2006

ID Theft Admits to Using Stolen IDs to Obtain Loans

Eric Bronche Thomas, 42, Gardena, California pleaded guilty to computer intrusion, use of a false identity document and misuse of a social security number.  Thomas is the third member of an identity theft ring that used personal information fraudulently obtained from Experian and other companies to apply for fraudulent loans.

Two other members of the identity theft ring – Calvin Son Guidry, 32, Inglewood, California, and John Wayne Avery, 52, Los Angeles, California – pleaded guilty earlier this year to conspiracy to commit identity theft. Guidry additionally pleaded guilty to the use of a false identity document.

When entering their guilty pleas, Thomas, Guidry, and Avery admitted working together to obtain personal data – including names, dates of birth and social security numbers – and to use that data to fraudulently apply for loans. Thomas admitted to establishing a real estate company and using that company to obtain access to Experian credit reports, from which he harvested personal information from unsuspecting victims. With the personal information, Thomas and Guidry applied for loans from various lending institutions and created counterfeit identity documents. Avery and other members of the ring would then use the identification documents to claim the loan checks.

In addition to the loan fraud scheme, Thomas also admitted to applying for a Best Buy credit card using a false social security number after the loan fraud case had been filed. Thomas has agreed to forfeit several residences that he had purchased using stolen identities.

The government estimates that the actual loss associated with the identity fraud tied to Thomas, Guidry, and Avery is more than $300,000. At least 30 people were victimized.

Sentencing for Thomas is set for August 28, 2006 at which time he faces a maximum possible sentence of 35 years in federal prison. Guidry is scheduled to be sentenced on October 16, 2006 and faces a maximum possible sentence of 20 years in federal prison. Avery is scheduled to be sentenced on November 27, 2006 and faces a maximum sentence of five years in federal prison.

mortgage fraud

1. There can be little doubt that there will continue to be a rise in this type of ID theft case.

   While the financial industry as a whole is probably further ahead than most industries (thanks in part to GLB and SOX) there is still a tendency for companies to “spend more on their coffee service” than on information security.

   The type of hole that was left for these three to exploit is a definite red flag for failed or non-existent policies and procedures, not necessarily technology.

   Posted by  on  07/19  at  06:42 AM

2. Why didn’t I think of that? Steal an identity, issue a big loan and then disappear in the world and never to be heard from again. Simple, huh?

   Posted by  on  05/04  at  09:00 PM