A Utah man has been sentenced to 57 months in prison for his involvement in two separate criminal schemes, according to U.S. Attorney Philip R. Sellinger. Timothy Gibson, aged 48 from Lehi, Utah, pleaded guilty to charges related to a multi-million dollar credit card fraud scheme and making false statements to a bank.
Gibson's sentencing took place in Trenton federal court under Judge Georgette Castner. He was charged with conspiracy to commit wire fraud and making false statements as part of a scheme in Utah.
Court documents reveal that Gibson and his co-conspirators solicited personal information from straw credit card applicants. This information was used to submit falsified applications for credit cards, which were then used for purchases that generated rewards points. These purchases were often canceled after the points posted but before payments were due. Additionally, sham transactions were processed through Gibson's business merchant account.
The conspiracy involved over 8,000 fraudulent accounts using more than 1,500 straw cardholders' names, resulting in the acquisition of over 800 million rewards points valued at more than $8 million.
Charges are still pending against Aharon Lev of Lakewood, New Jersey. Lev is presumed innocent until proven guilty.
In a separate scheme involving false statements to a bank, Gibson misrepresented employee numbers and payroll figures in May 2020 to secure a loan through the Paycheck Protection Program (PPP), established under the CARES Act during the COVID-19 pandemic.
Besides the prison sentence, Judge Castner ordered three years of supervised release for Gibson and restitution payment.
U.S. Attorney Sellinger acknowledged the efforts of IRS-Criminal Investigation special agents led by Special Agent Jenifer L. Piovesan and postal inspectors from the U.S. Postal Inspection Service directed by Inspector Christopher A. Nielsen Philadelphia Division.
Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division represented the government in this case.