13 charged in $3.5 million identity theft ring in Wichita

The U.S. Postal Inspection Service noticed as early as October 2013 that a lot of mail was disappearing from collection boxes, home mailboxes and group mail rooms in the Wichita area.

Now, two and a half years later, charges have been brought against 13 people alleged to have conspired in an identity-theft ring that resembled a small, coordinated business. This is one of the largest identity theft cases that the U.S. attorney in Kansas has ever prosecuted, according to spokesman Jim Cross.

The group is suspected of dividing the work into several tasks, according to a news release issued by the office of Acting U.S. Attorney Tom Beall. Some allegedly specialized in stealing mail. Jeremy Peterson is cited as having more than 100 pieces of mail belonging to other people.

Other members are suspected of altering checks, creating fake checks and applying for credit cards. ID experts allegedly created fake Kansas driver’s licenses. Others in the group are accused of buying goods with stolen identities. And some have been accused of wielding firearms to buy and sell methamphetamine.

The fraud was profitable, bringing in an estimated $3.5 million of stolen money and goods, including a $43,500 Jaguar and a $62,000 Dodge Challenger Hellcat, according to the release.

The 13 suspects face 50 federal charges. The most serious penalties include 11 counts of conspiracy to commit bank fraud, which can lead to up to 30 years in jail and $1 million in fines for each charge.

In addition to the identify theft charges, the group faces nine firearms charges and several charges of possessing and distributing methamphetamine. If they were to be convicted on all charges and receive the maximum penalty, the group would collectively face more than 500 years in jail.

The group was tracked by a joint task force that included the U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Department, the Wichita Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

“This case highlights the importance of the strong working relationships among federal, state and local law enforcement,” Inspector in Charge Craig Goldberg of the U.S. Postal Inspection Service said in a news release. “The U.S. Postal Inspection Service is committed to working with our partners to ensure the continued trust people place in the mail and protecting the public from financial victimization by enforcing the laws that defend the nation’s mail system from illegal use.”

DETAILS

According to the indictment, here’s how the group allegedly worked:

Check cashing: The suspects allegedly added names to checks, removed the original names and created new counterfeit checks based on stolen checks.

Profiles: Based on stolen mail, the members are suspected of creating profiles of real people that included names, dates of birth, Social Security numbers and credit information.

People targeted: The indictment gives only the initials of people whose identities were stolen.

Cars purchased: Jacob Michael Martin is accused of using fake identity information to obtain a loan from Wells Fargo Bank and then purchasing a 2012 Jaguar from CarMax for $43,599.47. Martin is also accused of obtaining a loan from Skyward Credit Union of America and purchasing a 2014 Chevrolet Camaro SS from Eddy’s Chevrolet valued at $43,231.85. Chad Michael Abildgaard is accused of applying for a loan for a BMW.

Banks targeted: Golden Belt Bank, Bank of America, Skyward Credit Union, Meritrust Credit Union, Farmers, Campus Credit Union, Merchants State Bank, Capitol Federal Savings and Loan, Citi Bank and Wells Fargo were named in the indictment as banks that the alleged ring tried to withdraw money from.

Guns cited: Hi Point Firearms model CF-380, Browning Arms Company model Buck Mark .22 caliber semi-automatic pistol, Ceska Zbrojovka 40B semi-automatic pistol, Bond Arms Snake Slayer Derringer, Winchester 1500 XTR shotgun, Sig Sauer Model P556 pistol, Smith & Wesson M&P 9mm pistol.

This story was originally published June 5, 2016 at 3:06 PM with the headline "13 charged in $3.5 million identity theft ring in Wichita."