Posted on 05/03/2002 9:42:59 AM PDT by avg_freeper
Investigators busted an elaborate shell game played with stock certificates and dummy corporations that ripped off computer companies to the tune of $2 million over the last 18 months.
The 140-count indictment against 16 members of a "sophisticated" ring of accountants, computer operators and others was the first of its kind, District Attorney Richard Brown said yesterday.
"What set this criminal enterprise apart was its sophistication and corporate savvy," Brown said.
At the heart of the scam were dummy companies that the perpetrators created with great detail, investigators said.
In one deal outlined by Brown, the group got the name of an inactive Flushing corporation — Computer Care Inc. — that was registered with the New York secretary of state.
They then opened corporate checking accounts, rented a mailbox and even updated Dun and Bradstreet's file with their aliases so they could receive a favorable credit report.
When IBM checked on the company, it found good references and credit reports, and shipped $220,000 worth of IBM Thinkpads.
When it came time to pay, the group would abandon the shell companies and then start up all over again with new firms.
"The criminal element today is getting more sophisticated," said Police Inspector Jeremiah Quinlan, adding that breaking this crime ring should put would-be lawbreakers on notice. "As the criminals become more sophisticated, we're already there."
Besides IBM, the group allegedly also ripped off Gateway, Dell, Apple, Compaq and Sony, Brown said.
The group also is charged with using the same scam to steal a Lincoln Navigator, four BMWs, a Lexus and a Corvette from a Brooklyn automobile dealer.
The alleged leader, Tariq Khan, 41, of Levittown, L.I., was arrested yesterday. Two others were arrested earlier in the week, and three more are in custody on unrelated cases. The rest are being rounded up.
The charges included enterprise corruption, grand larceny and falsifying business records. Some of those charged could face up to 25 years in prison if convicted.
A scam to get money for terrorists??
Another example of those virtuous Arabs we keep hearing about.
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