A Maryland man was sentenced today to 30 years in prison in Baltimore federal court for conspiracy to commit bank fraud.
According to court documents, Theodore Sapperstein, age 67, formerly of Pikesville, and his co-conspirators unlawfully debited money from the bank accounts of unknowing victims throughout the United States without their authorization by creating shell companies and falsely representing to banks that debits against consumer-victims’ bank accounts were authorized as payment for services allegedly provided by those shell companies. To both conceal and continue conducting unauthorized debits, the scheme’s shell companies generated “micro debits” against other bank accounts controlled and funded by the scheme. The micro debits artificially lowered shell companies’ return rates to levels that conspirators believed would reduce bank scrutiny and lessen potential negative impact on the scheme’s banking relations. Sapperstein facilitated the scheme’s use of fraudulent micro debits and helped broker payment processing services for the scheme, securing a payment processor whose company processed the unauthorized debits. The scheme caused more than $1.5 million in loss to victims throughout the United States.
“Those who knowingly participate in schemes to use personal financial information about American consumers to steal money from their accounts will be held accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are committed to investigating and prosecuting individuals who facilitate such schemes.”
“For those who think they can take the easy road to financial gains by stealing money people have worked hard for, the U.S. Postal Inspection Service wants you to know we will hold you accountable for the pain and losses you cause,” said Inspector in Charge Eric Shen of U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “Today’s sentencing of Mr. Sapperstein along with others who knowingly participated in these schemes is the culmination of relentless teamwork by law enforcement to bring these criminals to justice and continue to vigilantly protect the American public.”
“My office is committed to ferreting out and punishing the predatory conduct of white-collar fraudsters who utilize, and often hide behind, shell companies and phony accounting and bookkeeping practices to steal money from unsuspecting victims,” said U.S. Attorney Erek L. Barron for the District of Maryland.
In July, Shoaib Ahmad of Canada was charged in the Central District of California with conspiracy to commit bank and wire fraud for his role in the scheme. That matter remains ongoing.
According to court documents, this case is related to a longer-running scheme that has been subject to multiple cases filed in Los Angeles, San Diego, and Las Vegas. In May 2023, a grand jury in Los Angeles returned an indictment in United States v. Courdy et al., charging 14 defendants with RICO conspiracy and other charges in the Central District of California. On July 30, a grand jury in Los Angeles returned an indictment in United States v. LoConti et al., charging six additional participants with RICO conspiracy and other charges. These indictments allege that defendants debited consumer-victims’ bank accounts without authorization using shell entities and “micro debits” to conceal their activities from banks.
In December 2023, Luis Ramirez pleaded guilty to conspiracy committing access device fraud in federal court in San Diego; he was sentenced on May 22nd this year with a total prison term including concurrent sentences amounting up-to-51 months . Harold Sobel also pleaded guilty last year (December '22)to similar charges at Las Vegas Federal Court resulting into serving-out sentence spanning over forty-two months .
USPIS continues its investigation into this case while prosecution against Sapperstein is being handled jointly by Trial Attorneys Wei Xiang , Meredith Healy & Amy Kaplan under Civil Division's Consumer Protection Branch alongside Assistant US Attorney Darryl Tarver supported further through collaborative efforts coming-in via US Attorney Office operating within Central District California jurisdiction .
For more information about Consumer Protection Branch enforcement efforts visit www.justice.gov/civil/consumer-protection-branch . Consumers can file complaints via Federal Trade Commission website www.reportfraud.ftc.gov or call toll-free number provided there i.e.,877-FTC-HELP . Justice Department offers resources relating towards addressing issues around victimization caused due-to fraudulent activities accessible through Office For Victims Of Crime portal located online @www.ovc.gov .