A federal judge sentenced a New York man to three years in prison for participating in a $1.3 million fraud ring that victimized seven credit unions, three banks, and other retailers, Rhode Island federal prosecutors said last week.
Angel L. Morales, 52, of New York, N.Y, previously admitted that he and nine others who were part of a Rhode Island-based fraud ring stole personal identifying information to open credit union and bank accounts and applied for car loans. Once the loans were obtained, Morales deposited the funds into accounts and quickly withdrew the money before the credit union or bank discovered the fraud, federal prosecutors said.
U.S. District Court Judge John J. McConnell, Jr. in Providence, R.I. also ordered Morales to serve three years supervised release and to pay $116,000 restitution.
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The fraud ring stole nearly $900,000 in car loans obtained online from the $9.2 billion Bethpage Federal Credit Union in Bethpage, N.Y., the $24.7 billion PenFed Credit Union in McLean, Va., the $9 billion Digital Federal Credit Union in Marlborough, Mass., the $735 million Direct Federal Credit Union in Needham, Mass., the $12 billion Alliant Credit Union in Chicago, the $452 million City of Boston Credit Union, the $2.3 billion Pawtucket Credit Union in Pawtucket, R.I., TD Bank, KeyBank and SoFi, according to court documents.
In addition, the fraudsters used fake IDs to steal more than $130,000 from mobile phone and clothing retailers throughout Rhode Island, Massachusetts, Connecticut and Pennsylvania.
Some of the fraud ring members have also been sentenced earlier this year, while cases are pending against others, court records show.
The ring's leader, Octavio Andres Difo-Castro, 28, of Brooklyn, New York, is scheduled to be sentenced next year. He admitted to employing and directing several individuals, including Morales, and provided them with the stolen IDs to carry out the fraud scheme, federal prosecutors said.
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
