18 December 2017
visit www.ebaday.com

Leader of US fraud ring pleads guilty

27 November 2008  |  4118 views  |  0 Statue of Liberty

The leader of a criminal gang that cost financial institutions over $20 million in losses through card, wire and bank fraud has pleaded guilty to conspiracy charges, say officials in New York.

Tahir Ali Khan, 32, pleaded guilty on Tuesday to conspiracy to commit bank, wire and credit card fraud and aggravated identity theft, according to a statement from US Attorney for Manhattan, Michael Garcia and New York State Attorney General Andrew Cuomo.

Prosecutors say he led a fraud gang known as the "Khan ring" that created false identification documents purporting to have been issued by government authorities, including driver's licenses, resident alien cards, social security cards, and tax identification documents.

The gang then built up financial credit for these false IDs - which members called "chickens" - to get bank and home mortgage loans and increased credit card limits.

Khan and his ring then defaulted on the loans and credit card debt, "causing millions in losses to numerous financial institutions, including the Bank of America," says the statement.

Khan has been in custody since being named as the lead defendant in a 15 person, multi-count indictment unsealed in August last year. He is the tenth defendant to plead guilty.

He is scheduled to be sentenced on February 10, 2009 and faces a statutory maximum sentence of 14 years in prison, a maximum fine of $250,000 or twice the gain or loss from the offence, and mandatory restitution to the victims of the offence.


Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Cybercriminals tap $8 billion underground credit line

Cybercriminals tap $8 billion underground credit line

24 November 2008  |  8846 views  |  0 comments
Police bust cyber fraud ring

Police bust cyber fraud ring

17 October 2008  |  11044 views  |  0 comments
Guilty plea in $700,000 phishing case

Guilty plea in $700,000 phishing case

10 October 2008  |  9185 views  |  0 comments
TJX card fraud gang leader jailed

TJX card fraud gang leader jailed

18 September 2007  |  7940 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.thomsonreuters.infovisit www.atos.netvisit www.aciworldwide.com

Top topics

Most viewed Most shared
satelliteRipple completes XRP Lockup
11049 views comments | 3 tweets | 2 linkedin
Banks tap Ethereum smart contracts for MiFID II complianceBanks tap Ethereum smart contracts for MiF...
8608 views comments | 15 tweets | 17 linkedin
Banks and fintech startups join forces on blockchain-based supply chain pilotBanks and fintech startups join forces on...
7538 views comments | 19 tweets | 22 linkedin
Nordea takes Open APIs into live productionNordea takes Open APIs into live productio...
7023 views comments | 6 tweets | 26 linkedin
hands typing furiouslyReshaping Customer Engagement & Da...
6961 views 0 | 4 tweets | 2 linkedin

Featured job

to £70K base, £105K ote, benefits
London, UK

Find your next job