Thursday March 28, 2024
SNc Channels:

Search
About Salem-News.com

 

Jun-12-2018 16:31printcomments

9 Corvallis-area Residents Charged with Perpetrating Credit Card Fraud Funding Marijuana Business

The cannabis industry does not have access to banking, which may have bearing on this case.

busted
Photo: Tim Smith, BC News (@bentoncrusadernews)

(EUGENE, Ore.) - According to BC News, Federal agents served a search warrant this morning at the Corvallis Cannibis Club located in Second Street in Corvallis. Agents stated that multiple Federal warrants were being served in the State of Oregon this morning.

Nine defendants residing in and around Corvallis, Oregon face conspiracy charges related to a credit card “bust-out” fraud scheme and an interstate marijuana distribution operation funded by the fraud.

A credit card “bust-out” is a fraud scheme that begins with perpetrators obtaining credit cards and accumulating large balances.

Payments are then made from co-conspirator bank accounts, reducing the credit card balances and allowing for additional purchases. After numerous purchases and payments are made, a co-conspirator would report the payments as unauthorized to their banks.

Banks then seek and obtain reimbursement from the credit card companies and deposit those funds back into the co-conspirator’s bank accounts.

No further payments are made on the credit cards, resulting in losses to those institutions that often exceed a card’s spending limit.

As alleged in the complaint, conspirators opened numerous credit cards, defrauding financial institutions of over $1 million.

Proceeds from the fraud were allegedly used to establish and operate illegal marijuana grows and fund a state-licensed marijuana retail business, the Corvallis Cannabis Club located in Corvallis.

Some of the marijuana grown in Corvallis is alleged to have been transported and sold outside of Oregon.

Three defendants were arrested today and will make their first appearance before U.S. Magistrate Judge Jolie A. Russo in Eugene on Wednesday, June 13, 2018.

A criminal charge is only an accusation of a crime; defendants are presumed innocent unless and until proven guilty.

This case was investigated by the FBI, Drug Enforcement Administration, and U.S. Postal Inspection Service with the assistance of Oregon State Police and the Corvallis and Philomath Police Departments. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.

Source: U.S. Attorney's Office - District of Oregon

_________________________________________




Comments Leave a comment on this story.
Name:

All comments and messages are approved by people and self promotional links or unacceptable comments are denied.


[Return to Top]
©2024 Salem-News.com. All opinions expressed in this article are those of the author and do not necessarily reflect those of Salem-News.com.


Articles for June 11, 2018 | Articles for June 12, 2018 | Articles for June 13, 2018
Annual Hemp Festival & Event Calendar

Support
Salem-News.com:


The NAACP of the Willamette Valley

googlec507860f6901db00.html
Sean Flynn was a photojournalist in Vietnam, taken captive in 1970 in Cambodia and never seen again.