Gang Members Indicted On Identity/Card Fraud

Members of an Elizabeth, New Jersey-based street gang turned to white collar crime, with an emphasis on identity fraud, NJ.com reported last week (Aug. 17).

Fourteen people face an indictment in Union County with 49 counts, including falsifying tax returns and producing fake gift cards that bilked victims of thousands of dollars. They allegedly used money from their schemes to give financial support to the gang, known as the “111 Neighborhood Crips,” and gang members in prison.

Seven of the gang members were identified by Union County prosecutors as the leaders behind the tax and gift card scams, activities that began in 2014. But all 14 of those indicted face charges under the New Jersey Racketeer Influenced and Corrupt Organizations (RICO) statute. Two defendants also face murder or attempted murder charges.

The financial fraud schemes worked by defendants buying stolen identities tied to real people and then using those identities to prepare fake W-2 forms, which were then filed with fake income tax returns. Those returns were used to collect thousands of dollars that came from dozens of those defrauded, who never knew their personal data had been taken, according to authorities.

In the gift card scheme, those indicted allegedly had a machine that was able to make gift and prepaid debit cards, which were then used at retail locations throughout the state of New Jersey.

After gathering funds from the gift card and tax return schemes, the gang members were alleged to have used the money for their own use and also to aid fellow members who were in prison. Money siphoned from the tax return gambit and the prepaid/gift cards went to help pay for incarcerated members’ bail, their attorneys’ fees and even funds for several commissary accounts, prosecutors said, as NJ.com reported.



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