17 charged in massive ID theft bust

IDG News Service - The operators of a New York business have been charged with running a massive identity theft and money laundering operation that raked in more than $35 million over a four-year period.

In total, 17 people have been indicted in the investigation, which centered on a midtown Manhattan company called Western Express International Inc. The charges were announced Wednesday by Manhattan District Attorney Robert M. Morgenthau, following a two-year investigation by Morgenthau's office and the U.S. Secret Service. Each suspect faces as much as 25 years in prison if convicted.

"The defendants participated in a multinational, Internet-based, criminal enterprise ... dedicated to trafficking in stolen credit card numbers and other personal identifiers," the district attorney's office said in a statement.

Western Express had been based at 555 8th Ave. in New York, and it operated the Dengiforum.com and Paycard2000.com Web sites. Both of these Web sites were operational this morning.

According to officials, criminals played a variety of roles in the scheme. Criminals who had access to stolen credit card numbers would be hooked up with buyers via what the district attorney called "cybercrime service providers." There were also "money movers," who would use digital currencies such as Egold and Webmoney to launder the proceeds.

The defendants would meet on "carder" forums, which are Web sites designed to facilitate this type of illicit commerce, the district attorney said.

In total, the group trafficked more than 95,000 stolen credit card numbers. Authorities have identified more than $4 million worth of credit card fraud with the group, but they say Western Express bank accounts moved more than $35 million in funds over four years. The illegal activity lasted longer than that, the district attorney said, running from 2001 to 2007.

Last year, two of Western Express's corporate officers received prison sentences after they pleaded guilty to illegal check cashing and money laundering activities.

The Secret Service referred questions on the case to Morgenthau's office. Representatives for the district attorney's office did not return calls seeking comment.