Tuesday, September 27, 2005

 

Couple Commits Credit Card Fraud to Pay For Kid's Parochial School Tuition


YH points us to this:

Laguna Hills, California - Asghar Syed, 56, a resident of Laguna Hills, pleaded guilty today before U.S. District Judge S. James Otero to possessing fraudulently obtained credit cards, bank fraud, and money laundering. His wife, Teresa Syed, 53, pleaded guilty Wednesday before Judge Otero to fraudulent use of an unauthorized credit card.

Asghar Syed admitted that he and his wife possessed more than 300 unauthorized credit cards, which were obtained through fraud by using about 95 fictitious names and false financial information. The couple used the cards and did not pay the charges that they were incurring. Asghar Syed admitted that the total loss caused by his activities exceeds $1,000,000.

Asghar Syed also admitted that he applied for and obtained two equity lines of credit from Wells Fargo Bank by using fraudulent representations. One line of credit was in the amount of $240,000; the other was in the amount of $44,000. To obtain the loans, Asghar Syed used the alias "Asghar S. Yed" and falsely stated that he earned $19,300 per month working as a "senior project software manager" at American Technology. In reality, Asghar Syed was unemployed, and American Technology was a fake "front" business that Asghar Syed established in West Covina to make it seem as if he was employed as a high-paid business executive.

Asghar Syed also admitted that he used $3,300 from the funds he obtained by defrauding banks to pay rent to maintain an office for American Technology, his fake "front business."

Teresa Syed admitted to fraudulent use of a credit card issued in the name of another person. She used the card to pay for her child's tuition at a private parochial school in Orange County, as well as other expenses.

Asghar Syed and Teresa Syed are scheduled to be sentenced on November 28, 2005 by Judge Otero. Asghar Syed faces a maximum sentence of 90 years imprisonment and a fine of $2,750,000. Teresa Syed faces a maximum sentence of 10 years imprisonment and a fine of $250,000. The government is also pursuing civil forfeiture proceedings to deprive the Syeds of the benefit of their fraudulent activities.

This case is a result of an investigation by the United States Secret Service and IRS-Criminal Investigation Division.



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