October 09, 2002

Contact: Lynn Kimbrough,

720-913-9025

Grand Jury Indicts Large ID Theft Enterprise

            The Denver Grand Jury returned an indictment on October 2, 2002 charging 14 defendants with 54 criminal counts, including the Colorado Organized Crime Control Act (racketeering.)  The defendants indicted are alleged to be part of a large ID theft ring that has stolen over $358,000 in the past 20 months through counterfeited payroll checks and forged credit card convenience checks obtained from mailboxes and dumpsters.

            The indictment is the result of a multi-jurisdictional investigation by the U.S. Postal Inspection Service, the Colorado Bureau of Investigation, the Denver Police Department and the Denver District Attorney’s Office.   The investigation identified 48 suspects who negotiated at least 790 fraudulent checks.

            The enterprise is alleged to have cashed forged and counterfeited checks at various banks, as well as King Soopers and Safeway stores, and casinos.  The indictment alleges fraudulent checks were obtained by:

§         Counterfeiting company payroll checks obtained from people who “sold” their checks to the enterprise, which compromised more than 40 business accounts;

§         Burglarizing apartment complex mailrooms and residential mailboxes to steal financial information, personal checks, and credit card convenience checks;

§         Dumpster diving for credit card convenience checks at post offices;   

§         Using information and checks found in stolen vehicles.

            The indictment alleges Edward Ivan Carr was the primary check maker for the counterfeit payroll checks and the primary source of stolen credit card convenience checks.  The indictment alleges Carr received money, property and methamphetamine from members of the enterprise who cashed the checks.  He is also alleged to have compensated the other members of the enterprise who recruited new members.

            The indictment alleges members of the enterprise used the stolen money to obtain methamphetamine, automobiles, and other merchandise, as well as to bond members of the enterprise out of jail. 

            Prior to the indictment, two members of the enterprise have pleaded guilty to racketeering, and one member to forgery. Of the 14 indicted, eight have been arrested, including Edward Carr.  Carr is being held on a $500,000 bond.

            Consumers may reduce their risk of check theft by:

1)                  Calling the customer service departments of their credit card issuers and request to “opt out” of marketing programs and mailings, including convenience checks;

2)                  Asking that new boxes of new checks be delivered to their financial institutions and not mailed to their residences.

3)                  Mailing bills to be paid at the post office rather than placing in residential mail boxes for carrier pick-up.

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The filing of a criminal charge is merely a formal accusation that an individual(s) committed a crime(s) under Colorado laws.  A defendant is presumed innocent until and unless proven guilty.  See Colo. RPC 3.6.