Man Admits Role in $200 Million International Credit Card Fraud
A man from New York has officially confessed to his role in a $200 million credit card scandal that spread over several continents. Khawaja Ikram pled guilty in court to conspiracy to commit bank fraud.
Ikram was originally charged in February 2013 for fabricating more than 7,000 false identities that were used to obtain credit cards. Other participants in the scandal, including Tarsem Lal and Azhar Ikram, doctored the credit reports for these fake identities in order to be able to steal more money from these accounts. The group managed to steal more than $200 million with their scam.
The team operated a three-part process. They would first create the documents necessary to build fake identities, including false credit profiles with the three major credit bureaus. Then, they would boost the credit scores as high as possible before applying for any loans. Finally, they would take out loans and credit cards using the new profiles they built.
Khawaja Ikram now faces a penalty of up to 30 years in prison and $1 million in fines. His sentencing is scheduled for September 23, 2014.