US prosecutors have charged seven people, many of them of Pakistani origin, for bank fraud amounting to USD3.5 million in two years. on Monday among Five people were arrested, the Justice Department said. A criminal complaint filed in a federal court in New Jersey has accused him of plotting bank fraud, using hundreds of fraudulent accounts to defraud several major banks damage, raising more than USD3.5 million.
According to the Department of Justice, the accusers include Rana Shar 36-year-old; Awaise Dar, 32; Shamsar Farooq, 26; Habib Majid, 34; Naved Arif, 42; Ali Abbas, 38; And Erm Ayaz, 36. To serve the illegal purpose of the conspiracy, the defendants set up bank accounts linked to shameless entities that had no legitimate purpose, and then they issued cheque payable to other entities associated then the accounts on which the cheque issue were involved in insufficient funds.
They will also handle fraudulent credit card and debit card transactions between shell companies. Alternatively, they would use these shell companies to execute temporary refund credits, commonly referred to as charge-backs, to investigate accounts involving criminal organizations where no prior legitimate transactions occurred Took place, federal; Prosecutors allege.
Banks left with losses
According to court papers, in each of these cases, members of the criminal organization withdrew funds (via ATM or bank teller) that banks and / or merchant processors deposited in Payee bank accounts at the time of fraudulent transactions.The prosecution alleged that since banks could recognize fraudulent transactions, banks and merchant processors suffered significant losses before they could recognize fraudulent transactions.
After investigation has found 200 bank accounts and 75 merchant credit card processing accounts, which are used to facilitate the schemes. The bank fraud conspiracy case 30 years in prison and USD1 million fine .