Floridian pleads guilty in credit card fraud scheme
A Florida man pleaded guilty in U.S. District Court in Pittsburgh to conspiracy to commit bank, wire and mail fraud in an illegal credit card payment scheme, federal prosecutors said Thursday.
Gennady Nudelman, 42, of Boca Raton, is accused of being part of a conspiracy to fraudulently process credit card payments, the U.S. Attorney in Pittsburgh said.
The defendant conspired to prevent credit card companies from learning that their products and services to pay for prohibited activities and to subvert the internal controls the credit card companies used to detect and prevent this type of activity.
The fraud involved establishing shell corporations and websites associated with the shell companies that falsely claimed that they sold products other than pharmaceutical drugs or products that violated trademark infringement laws.
The conspirators got merchant accounts from the credit card companies in the names of the shell corporations and the fake websites. Those accounts were used to process payments for pharmaceutical drugs or products that violated trademark infringement laws, prosecutors said.
The conspirators even set up a telephone bank to receive calls from customers questioning billings on their credit card statements, and the conspirators explained to the customers the true nature of the transactions in hopes of avoiding charge-backs that could cause the credit card companies to question the legitimacy of the transactions.
Nudelamn is scheduled to be sentenced before Judge David Cercone on April 29. He could face up to 30 years in prison and a $1 million fine.
Joe Napsha is a Tribune-Review staff writer. You can contact Joe at 724-836-5252 or firstname.lastname@example.org.