Operator of Credit Card Fraud Ring Gets 12 Years in Prison

The operator of a credit card fraud ring that ran up and down the east coast was sentenced on Friday to 12 years in prison for running operation that that used counterfeit credit cards encoded with stolen account numbers.

Jonathan Oliveras, 26 of Brooklyn, N.Y., managed a crime ring that used stolen credit card account information in New York, New Jersey and the Washington, D.C., area.

Federal and local law enforcement agents raided Oliveras’ apartment in July 2010, and found credit card encoding equipment along with more than 2,300 stolen credit card numbers. According to court documents, credit card companies have identified thousands of fraudulent transactions using the account numbers found in Oliveras’ possession, totaling more than $750,000.

In addition to his prison term, Oliveras was ordered to forfeit $770,646 and to serve three years of supervised release. In his plea, Oliveras admitted that he managed a ring of co-conspirators that made use of used stolen credit card details. Oliveras bought the stolen credit card account details from someone believed to be in Russia, and then re-encoded the details onto cards that were then used to purchase gift cards. The gift cards were used to buy merchandise that ultimately was returned for cash.

Oliveras pleaded guilty on August 10, 2011, to one count of wire fraud and one count of aggravated identity theft.