Gift card fraud scheme leads to seven-count indictment

Diesel prices have been a cause for concern for many.

This isn’t the way to deal with it.

A Maryland federal grand jury has indicted Leroy Holmes of Baltimore on charges of bank fraud, identity theft and access device fraud.

These charges stem from an alleged scheme to re-encode gift cards with stolen financial information, then use the card to purchase fuel for truckers at half price in exchange for cash, according to a news release from the Maryland U.S. Attorney’s Office.

According to the indictment, Holmes allegedly defrauded financial institutions by creating and using credit and debit card information encoded on gift cards to make fraudulent purchases without authority from cardholders or financial institutions. In addition, Holmes allegedly re-encoded gift cards to charge as credit and debit cards using the real banking information of victims at gas stations where he sold gas to truck drivers for half price, the indictment said.

This alleged gift card fraud scheme in which Holmes used, created or possessed at least 594 counterfeit credit and debit cards, resulting in a loss of at least $170,000, took place from October 2019 to March 2022.

Holmes is facing a maximum sentence of 20 years in federal prison for bank fraud, 15 years in federal prison for access device fraud and two years in federal prison consecutive to any other sentence imposed for aggravated identity theft if convicted.

The gift card fraud scheme indictment was announced by United States Attorney for the District of Maryland Erek L. Barron. An individual charged by indictment is presumed innocent unless and until proven guilty at later criminal proceedings. LL

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