A California man has been convicted by a federal jury of allegedly defrauding American Express of more than $4.7 million and money laundering, according to a Wednesday, April 27, press release from the US Department of Justice.
The 45-year-old suspect, Jasminder Singh, allegedly used four business entities that he both created and controlled, as well as 10 American Express credit cards issued in the names of these entities. He used those things to buy thousands of Apple iPhones, which he allegedly sold internationally for millions of dollars.
The report says Singh misrepresented his inability to repay more than $4.7 million in costs associated with purchasing the phones. He initiated fake payments in order to get more credit. With the proceeds from the scheme, Singh reportedly paid for personal expenses and bought luxury items like a $1.3 million house and a luxury vehicle.
Singh has been charged with bank fraud and money laundering, and his sentencing will take place on August 2. The report says he could face up to 30 years in prison.
PYMNTS wrote that in another recent case, a Las Vegas grand jury indicted 76-year-old Michael Zeto for using fraudulent checks to steal money from victims’ bank accounts. He was charged with fraud, bank fraud and aggravated impersonation, according to a DoJ press release.
Read more: Nevada man charged with 20 counts of fraudulent check
Zeto reportedly worked with foreign telemarketers to obtain the names, bank account numbers and other information of American consumers he believed had purchased products. However, they had not agreed to purchase the products or authorize their bank accounts.
According to the report, Zeto knew that at least one of the partners was carrying out fraudulent activities. In addition, he knew that many of the supposed sales sent by the partners were not real and that the customers had not authorized the accounts, according to court documents.
Zeto allegedly used the telemarketing partners’ information to write fraudulent checks to companies he controlled and arranged to open bank accounts.