Identity Theft—Joseph Mo Pun Lau

A New Jersey man has been charged in a four-count Information with being a member of a conspiracy to defraud Wachovia Bank, Commerce Bank, PNC Bank, Bank of America, and Suntrust Bank, “by depositing stolen and counterfeit checks into bank accounts that had been opened using false identification documents and then withdrawing the deposited funds.^[1] As a result of the scheme more than $400,000 was taken from the banks.^[2]

According to the Information, Joseph Mo Pun Lau and an associate allegedly used a wooden block covered with adhesive material and connected to a wire in order to go “fishing” for mail in US Postal Service [hereinafter USPS] mail collection boxes.^[3] They would allegedly also secretly video tape USPS employees using “arrow keys” to open mail collection boxes; still images from the video would be enlarged, from which “he would then create templates from which counterfeit USPS arrow keys could be cut for purposes of gaining unlawful access” to the drop boxes.^[4] Mail collection boxes are accessible only with an arrow key, and there is only one arrow key per route which opens all collection boxes.^[5] The Ninth Circuit Court of Appeals has explained an arrow key quite well:

An "arrow key" is used by mail carriers to access a bank of mailboxes or a collection box that is locked by an "arrow lock." They are called "arrow" keys and locks because of the arrow conspicuously stamped on them. They are manufactured by the Postal Service in Washington D.C. and are distributed through controlled channels. Arrow keys are "accountable property." That means a mail carrier must check out an arrow key at the beginning of each delivery day and return it at the end.^[6]

Using the counterfeit arrow keys and the “fishing” system, Mr. Lau and his associate allegedly would steal valid checks from the mail collection boxes, which would then be used to create counterfeit checks made payable to various aliased employed by Mr. Lau and his associate.

Mr. Lau has been charged with conspiracy, bank fraud, possession of a counterfeit US mail key with intent to use it unlawfully, and mail theft.

Conspiracy is a federal crime covered by 18 U.S.C. § 371. Under this section, it is a crime for a person to conspire with at least one other person to commit an offense against the United States, or to defraud the United States, and then do an overt act in furtherance of the conspiracy. The punishment for a violation of section 371 is a fine, imprisonment for up to 5 years, or both.

Bank fraud is covered by 18 U.S.C. § 1344, which makes it a crime for a person to knowingly execute a scheme or artifice to defraud a financial institution, or to obtain any of the moneys of the financial institution by means of false or fraudulent pretenses or representations. The penalty for doing so is a fine of not more than $1,000,000, imprisonment for up to 30 years, or both.

Possession of counterfeit mail keys is covered by 18 U.S.C. § 1704, which makes it a crime for a person to knowingly and unlawfully make, forge, or counterfeit any key suited to a lock adopted by the USPS, with the intent unlawfully to use it. The punishment for a violation of this section is a fine, imprisonment for up to 10 years, or both.

Finally, theft of mail is covered by 18 U.S.C. § 1708, which makes it a crime for a person to steal, take, or by fraud or deception obtain, mail from any mail receptacle. The punishment for mail theft is a fine, imprisonment for up to 5 years, or both.

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[1] US Attorneys Office, News Release: Joseph Mo Pun Lau, Dec. 12, 2005; Information, US v. Lau, (E.D. Pa. 2005) at 2. (PDF)
[2] US v. Lau, at 2-3.
[3] Id. at 3.
[4] Id.
[5] Id. at 2.
[6] US v. Ewain, 88 F.3d 689, 692 (9th Cir. 1996).