Financial Fraud—Guilty Plea

A Clementon, New Jersey man has pleaded guilty to bank fraud and credit card fraud.^[1] Remington T. Council admitted that he had a scheme to defraud Commerce Bank of more than $320,000 and MBNA America Credit Cards of approximately $27,000 between April 2000 and September 2003.^[2]

According the criminal information to which Mr. Council pleaded guilty, he and others caused fraudulent checks to be deposited into numerous accounts at Commerce Bank, and very quickly had the check funds withdrawn by the account holders.^[3] Mr. Council also used the personal information of someone else to establish a credit card account in the name of a construction company.^[4]

Bank Fraud
Under 18 U.S.C. § 1344, it is a crime for a person to knowingly execute a scheme or artifice to defraud a financial institution, or to obtain money from a financial institution by fraudulent means.

The punishment for a violation of section 1344 is a fine of up to $1 million, imprisonment for up to 30 years, or both.

Credit Card Fraud
Under 18 U.S.C. § 1029(a)(5), it is a crime for a person to knowingly and with intent to defraud “effect[] transactions, with 1 or more access devices issued to another person … to receive payment or any other thing of value.” The definition of access device includes credit cards.^[5]

The punishment for a violation of section 1029 is a fine, imprisonment for up to 15 years, or both.^[6]

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[1] US Attorney’s Office, Clementon Man Admits Defrauding Financial Institutions of $347,000, Oct. 24, 2005, available here.
[2] Id.
[3] Id.
[4] Id.
[5] 18 U.S.C. § 1029(e)(1).
[6] Id. § 1029(c)(1)(A)(ii).