The main suspect, 35-year old Philip Cumming, was an employee of
Teledata Communications (TCI), the maker of credit report accessing
software, from mid-1999 to March 2000, during which time he
allegedly obtained client passwords and codes that enabled him to
download personal credit reports.
In the three-year period over which the fraud operated, Cummings
allegedly downloaded tens of thousands of credit reports from all
major credit reporting agencies and then sold them, for $60 each,
to a ring of 20 people in the Bronx and Brooklyn.
These fraudsters then used the stolen information to take over
victims' identities, request credit cards, transfer funds from bank
accounts and make fraudulent purchases, resulting in a massive loss
to victims. Initial estimates put the figure at over $2.7 million,
but authorities now believe that more than $50 million was
stolen.
The scam was revealed in February 2002, when Ford Motor Credit
discovered it was being billed for thousands of credit reports it
never ordered. After an investigation, Cummings was arrested and
charged with being a member of a ring of identity thieves.
He was also accused of conspiring with another man, Linus
Baptiste of New Rochelle, New York, to sell the stolen reports.
Baptiste pled guilty to fraud and conspiracy charges last year,
according to reports, while another fraudster, Hakeen Muhammad,
pled guilty to fraud charges.
Three other men have also been charged.
On Tuesday Cummings pled guilty to wire fraud, conspiracy and
fraud. He faces a maximum sentence of 14 years although, given that
he suffers from serious heart problems, it is likely that the
sentence will be lighter.
Sentencing is set for 11th January.
