IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN

IN THE UNITED STATES DISTRICT COURT FOR THE

WESTERN DISTRICT OF MISSOURI

WESTERN DIVISION

UNITED STATES OF AMERICA, ) Case No. 09-00218-01/10-CR-W-HFS

)

Plaintiff, ) COUNT ONE: Defendants 1 through 10

v. ) Conspiracy

) 18 U.S.C. § 371

STEVEN JAMES PALMER, (1) ) NMT: 5 Years Imprisonment

[DOB: 05/15/1981], ) NMT: $250,000 Fine

a/k/a “Haze,” ) NMT: 3 Years Supervised Release

a/k/a “DJ Haze Piffnten,” ) Class D Felony

a/k/a “DJ Haze Gotti,” )

) COUNT TWO: Defendant 1 only

GERARD DORIEN BATES, (2) ) Access Device Fraud

[DOB: 07/11/1986], ) 18 U.S.C. § 1029(a)(5)

a/k/a “Coko,” ) NMT: 15 Years Imprisonment

) NMT: $250,000 Fine

SEAN FLEMING, (3) ) NMT: 3 Years Supervised Release

[DOB: 08/09/1981], ) Class C Felony

a/k/a “David Bravo” )

a/k/a “Pucci,” ) COUNT THREE: Defendant 1 only

) Aggravated Identity Theft

ROMEYO CALAVAREY, (4) ) 18 U.S.C. § 1028A(a)(1)

[DOB: 01/07/1985], ) Mandatory Sentence: 2 Years Imprisonment

a/k/a “Malawtic Surreal” ) NMT: $250,000 Fine

) NMT: 3 Years Supervised Release

TROY SAMPSON, (5) ) Class E Felony

[DOB: 02/18/1977], )

a/k/a “Alaysia Simpson,” ) COUNTS FOUR through NINE: Defendant

) 8 only

TYRONE JACKSON, (6) ) Access Device Fraud

[DOB: 05/21/1987], ) 18 U.S.C. §§ 1029(a)(5) and 2

a/k/a “TJ Milan,” ) NMT: 15 Years Imprisonment

) NMT: $250,000 Fine

ALEXANDER LEWIS, (7) ) NMT: 3 Years supervised Release

[DOB: 11/25/1984], ) Class C Felony

a/k/a “Mike Gotti,” )

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 1 of 31

) COUNTS TEN through FIFTEEN:

TERMAIN BRICE, (8) ) Defendant 8 only

[DOB: 08/16/1978] ) Aggravated Identity Theft

) 18 U.S.C. §§ 1028A(a)(1) and 2

SIMON P. CARTER, (9) ) Mandatory Sentence: 2 Years Imprisonment

[DOB: 04/29/1979], ) NMT: $250,000 Fine

a/k/a “Simmone” ) NMT: 3 Years Supervised Release

) Class E Felony

and )

) Maximum Punishment if Convicted

KAREEM NELSON, (10) ) on All Counts:

[DOB: 01/12/1979], )

a/k/a “Mutley” ) Defendant Palmer (1):

) Not less than 2 years imprisonment

) Not more than 27 years imprisonment

Defendants. ) $750,000 Fine

_________________________________) Not more than 3 years Supervised Release

Order of Restitution

$100 Mandatory Special Assessment

(Each Count)

Defendant Brice (8):

Not less than 2 years imprisonment

Not more than 102 years imprisonment

$3,250,000 Fine

Not more than 3 years Supervised Release

Order of Restitution

$100 Mandatory Special Assessment

(Each Count)

Defendants 2 through 7, 9 and 10

Not more than 5 years imprisonment

$250,000 Fine

Not more than 3 years supervised release

Order of Restitution

$100 Mandatory Special Assessment

Each Count

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 2 of 31

T H I R D S U P E R S E D I N G I N D I C T M E N T

THE GRAND JURY CHARGES THAT:

COUNT ONE

(Conspiracy)

1. Between on or about August 20, 2008, and continuing to on or about March 27,

2010, in the Western District of Missouri and elsewhere, STEVEN JAMES PALMER,

GERARD DORIEN BATES, SEAN FLEMING, ROMEYO CALAVAREY, TROY

SAMPSON, TYRONE JACKSON, ALEXANDER LEWIS, TERMAIN BRICE, SIMON

CARTER, and KAREEM NELSON, defendants herein, did knowingly and with intent to

defraud, conspire and agree with each other and with others known and unknown to the Grand

Jury, to commit violations of Title 18, United States Code, Sections 1343 (Wire Fraud),

1029(a)(5)(Access Device Fraud), and 1028A(a)(1)(Aggravated Identity Theft), by devising and

executing a scheme and artifice to defraud, which was to obtain stolen access device information

consisting of credit and debit card numbers, together with the matching cardholder names,

expiration dates, security codes, billing addresses, and other means of identification, without the

knowledge and without the authority of the cardholders, hereinafter “identity theft victims,” and

without lawful authority, and then transmitting and causing to be transmitted false and fraudulent

pretenses, representations, and promises, namely the stolen access device information belonging

to the identity theft victims, to make online purchases at Internet websites of the reservation

systems of United States domestic airline industry, including United Airlines, Delta Air Lines,

US Airways, American Airlines, Northwest Airlines, Southwest Airlines, Continental Airlines,

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 3 of 31

AirTran Airways, Virgin America Airlines, Spirit Airlines, and Frontier Airlines, in order to

effect financial transactions, which were the purchase of airline tickets, by which STEVEN

JAMES PALMER, GERARD DORIEN BATES, SEAN FLEMING, ROMEYO

CALAVAREY, TROY SAMPSON, TYRONE JACKSON, ALEXANDER LEWIS,

TERMAIN BRICE, SIMON CARTER, and KAREEM NELSON, received things of an

aggregate value equal to or exceeding $1,000 during a one year period, and the transactions

affected interstate commerce.

2. The object of the conspiracy was to create a nationwide “black market” for the sale

of airline tickets by using stolen credit and debit card information of the identity theft victims

to make online purchases of airline tickets. STEVEN JAMES PALMER, GERARD DORIEN

BATES, SEAN FLEMING, ROMEYO CALAVAREY, TYRONE JACKSON,

ALEXANDER LEWIS, TERMAIN BRICE, SIMON CARTER, and KAREEM NELSON,

worked together and with others known and unknown to the grand jury to obtain stolen credit

card information to make online purchases of airline tickets and the confirmation codes for the

tickets, which they forwarded to their customers, including TROY SAMPSON, who were the

passengers purchasing the tickets at a deep discount of their true value, knowing that the tickets

could not be legitimately purchased at that cost. Thus, STEVEN JAMES PALMER,

GERARD DORIEN BATES, SEAN FLEMING, ROMEYO CALAVAREY, TYRONE

JACKSON, ALEXANDER LEWIS, TERMAIN BRICE, SIMON CARTER, and KAREEM

NELSON, profited from the scheme by purchasing the stolen credit and debit card information

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 4 of 31

of the identity theft victims at a nominal cost, then using the stolen information to purchase the

airline tickets at no cost to the conspirators, and then selling the confirmation codes of the airline

tickets to customers of the conspirators, including TROY SAMPSON and KAREEM

NELSON, for prices usually between $100 and $250 per ticket, or sometimes for free.

MANNER AND MEANS

3. The manner and means by which the conspiracy was sought to be accomplished

included, among others, the following:

a. The conspirators used cellular telephones, email accounts, and other forms

of electronic communication and storage, to communicate with each other

and their customers in furtherance of the conspiracy and to transfer,

possess, and use stolen credit and debit card information and means of

identification of the identity theft victims to make fraudulent purchases of

airline tickets. The instrumentalities of the electronic communication and

storage included:

Email Accounts

bangolsen@aol.com gotthaze@yahoo.com

discdisney@aol.com discdisney@yahoo.com

ilovehaze@live.com hazegpiffnten@gmail.com

gbates770@yahoo.com gerardbates@gmail.com

toifrancis@live.com diordoll07@yahoo.com

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 5 of 31

chulomia@me.com dbravo718@gmail.com

chulomia@mac.com Seanblze99@aol.com

prettyboyromeyo@yahoo.com twistedtj@tmail.com

lewisalexander@ymail.com zaramgt@yahoo.com

romeyoc@gmail.com termainbrice@gmail.com

phearian@yahoo.com

Telephone Numbers

313-903-4779 646-884-1166 407-690-1305

305-627-3034 786-406-9056 917-449-8933

347-479-3674 347-546-7072 347-449-5507

914-582-1607 917-356-1450

b. The conspirators obtained stolen credit and debit card information

belonging to identity theft victims in the United States from a common

source in Bangladesh (“Bangladesh source”), and other sources known and

unknown to the grand jury, including ALEXANDER LEWIS, via

electronic messaging to their electronic communication and storage

devices, for a fee.

c.ALEXANDER LEWIS had the ability to supply stolen credit card

information to the conspiracy by stealing credit and debit card numbers,

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 6 of 31

and the corresponding means of identification of the cardholders, from his

places of employment, namely hotels in the Atlanta, Georgia, metro area.

d. Other conspirators, known and unknown to the grand jury, including

KAREEM NELSON, provided customers to the conspiracy who flew as

passengers on airline tickets fraudulently purchased with stolen credit card

information.

e. Using the Internet connectivity of the conspirators’ computers and cellular

phones, and Internet Service Providers at airports, hotels, libraries,

FedEx/Kinkos stores, and other public Internet connections, and also

Internet connections at private residences, and voice calls, the conspirators

were able to access the reservation systems of the domestic airlines

industry to make purchases of airline tickets using stolen credit and debit

card information belonging to the identity theft victims.

f. Several of the conspirators, including STEVEN PALMER, GERARD

BATES, SEAN FLEMING, ROMEYO CALAVAREY, TYRONE

JACKSON, and TERMAIN BRICE, had access to the merchant

identification number belonging to a mattress company, “Sleepy’s,” in

White Plains, New York, which they used to call a credit card verification

service, “Elavon,” in Knoxville, Tennessee, and in doing so the

conspirators could check the stolen credit card numbers to determine

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 7 of 31

whether or not the card numbers were valid and could be used to purchase

airline tickets, and that the means of identification of the cardholder

matched the card number being checked.

g. Upon successfully purchasing airline tickets in this manner, the

conspirators would obtain confirmation numbers for the tickets, which their

customers could use to obtain boarding passes allowing them to board

aircraft as if a ticket had been legitimately purchased. In addition, the

conspirators would book tickets for themselves using the stolen credit and

debit card information belonging to the identity theft victims.

OVERT ACTS

4. In furtherance of the conspiracy and to effect the objects of the conspiracy, the

following overt acts, among others, were committed in the Western District of Missouri and

elsewhere, and such acts were done without the authority of the identity theft cardholder victims

described below, and without lawful authority, and were in and affected interstate commerce:

a. On or about August 20, 2008, defendant STEVEN JAMES PALMER

accessed the online reservations website of Continental Airlines to book

two airline tickets for his customers, “Alaysia Simpson” and Bobby

Huggins, to fly from the Fort Lauderdale Hollywood International Airport

in Florida to the Kansas City International Airport in the Western District

of Missouri. “Alaysia Simpson” was an alias used by TROY SAMPSON.

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 8 of 31

Both tickets were purchased with a Citibank VISA credit card, without the

authority of the cardholder, identity theft victim JG of Brooklyn, New

York. The email address used for the two tickets was bangolsen@aol.com,

which was an email account registered through an IP address of the

Optimum Online Internet connection at STEVEN JAMES PALMER’s

residence in Brooklyn, New York.

b. On or about August 22, 2008, defendant STEVEN JAMES PALMER

accessed the website for Continental Airlines to book two airline tickets for

his customers, “Alaysia Simpson” and Bobby Huggins, to fly from the

Kansas City International Airport in the Western District of Missouri to the

Louis Armstrong New Orleans Airport in Louisiana. Both tickets were

purchased with an American Express Card, without the authority of the

cardholder, identity theft victim HK of Butler, Pennsylvania. The email

addresses used for the two tickets was bangolsen@aol.com. “Alaysia

Simpson” was an alias used by TROY SAMPSON.

c. Between on or about September 7, 2008, and on or about October 3, 2008,

STEVEN JAMES PALMER, used a United Missouri Bank VISA card

issued to identity theft victim PP of Jefferson City, Missouri, in the

Western District of Missouri, to fraudulently purchase twenty-one airline

tickets for STEVEN JAMES PALMER, “Alaysia Simpson,” (alias for

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 9 of 31

TROY SAMPSON), Bobby Huggins, and other customers for flights on

Frontier Airlines, Continental Airlines, Delta Air Lines, United Airlines,

American Airlines, and US Airways. The total of the fraudulent charges

was $9,815.66. The email address used to book the United Airlines tickets

was bangolsen@aol.com, and the contact telephone number given was

646-884-1166, which was subscribed to by STEVEN JAMES PALMER.

One of the United tickets was for passenger “Steven Palmer.”

d. On or about September 30, 2008, FP of Douglasville, Georgia, called a

Bank of America call center in Hunt Valley, Maryland, to request a balance

transfer involving her Bank of America VISA card number ending in 8179.

The Bank of America employee she spoke with was TYRONE

JACKSON. Without the authority of the cardholder, and without lawful

authority, TYRONE JACKSON stole the Bank of America VISA card

number ending in 8179, and other means of identification of FP, and

transferred the information to the conspiracy for use in booking airline

tickets. The stolen information was immediately put to use on September

30, 2008, to book two airline tickets, as follows:

Date Passenger Route Airline Amount

09/30/08 Gerard Johnson Phoenix to Detroit Frontier $ 342.19

09/30/08 Charles Sweeney Phoenix to Detroit Frontier $ 342.19

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 10 of 31

e. On or about October 1, 2008, an unknown member of the conspiracy

booked tickets on Spirit Airlines for GERARD DORIEN BATES and

SEAN FLEMING for two flights departing the Los Angeles International

Airport that same day. The Spirit ticket for GERARD DORIEN BATES

was for travel from Los Angeles to Detroit, Michigan and the ticket for

SEAN FLEMING was for travel from Los Angeles to Fort Lauderdale,

Florida. The tickets were purchased with the same Bank of America VISA

card ending in 8179, without the authority of the cardholder, FP, of

Douglasville, Georgia. The email address used for the booking of the

ticket for GERARD DORIEN BATES was gbates770@yahoo.com. The

email address used for the booking of the ticket for SEAN FLEMING was

sfleming770@yahoo.com. The same day, October 1, 2008, the Bank of

America VISA card ending in 8179 was used without the authority of the

cardholder, FP, to make online bookings for two sets of tickets on United

Airlines for Marcus Maddox and Kevin Pulley to fly from the Kansas City

International Airport in the Western District of Missouri, to Chicago, and

continuing to Detroit. The email address used for these two sets of tickets

was mmaddox770@yahoo.com.

f. On or about October 16, 2008, defendant STEVEN JAMES PALMER

used his Optimum Online Internet connection at his residence in Brooklyn,

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New York, to register an email account “ilovehaze@live.com” and gave

his registration name as “Steven Palmer.” The same day, SEAN

FLEMING created the email account “chulomia@me.com” and gave his

alternate email address as “seanblze69@aol.com.” The billing name used

to register the new email address was “David Bravo.” The IP address used

to register the new email address was assigned to the residence of TD, of

Newark, New Jersey.

g. On or about October 28, 2008, defendant STEVEN JAMES PALMER

accessed the website for Delta Air Lines to book two airline tickets for his

customer, “Alaysia Simpson” (alias for TROY SAMPSON), to fly from

the New York LaGuardia airport to Atlanta, Georgia, then a second flight

from Atlanta to the Kansas City International Airport in the Western

District of Missouri, on October 31, 2008. Both tickets were purchased

with an American Express Card, without the authority of the cardholder,

identity theft victim RW of Tulsa, Oklahoma. The email addresses used

for the two tickets were gotthaze@yahoo.com and bangolsen@aol.com.

The IP address used to book the tickets was the Optimum Online IP

address assigned to the residence of STEVEN JAMES PALMER in

Brooklyn, New York.

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 12 of 31

h. On or about January 14, 2009, STEVEN JAMES PALMER, used his

Optimum Online Internet connection at his residence in Brooklyn, New

York, to register an email account “toifrancis@live.com” and gave his

registration name as “Martin Palmer.”

i. On or about March 25, 2009, the Bangladesh source sent an email to an

email address used by ROMEYO CALAVAREY,

prettyboyromeyo@yahoo.com, which contained five stolen sets of VISA

credit card numbers, including the means of identification of the

cardholders and the VISA credit card numbers, expiration dates, security

codes, billing addresses, cardholder contact information, and email

addresses of the cardholders. The same day, ROMEYO CALAVAREY

forwarded the sets of stolen VISA numbers to an email account used by

SEAN FLEMING, chulomia@me.com.

j. On or about April 9, 2009, ROMEYO CALAVAREY sent an email to

SEAN FLEMING which contained six sets of stolen MasterCard credit

card numbers, including the means of identification of the cardholders and

the MasterCard credit card numbers, expiration dates, security codes,

billing addresses, cardholder contact information, and email addresses of

the cardholders. ROMEYO CALAVAREY sent the email using the

screen name “Romeyo c” and the email address

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 13 of 31

prettyboyromeyo@yahoo.com. SEAN FLEMING received the email at

chulomia@me.com. Later the same day, SEAN FLEMING sent an email

to ROMEYO CALAVAREY which contained the same six sets of

MasterCard credit card numbers, with a message in the subject line of the

email header stating: “None of those work.” The email header contained

the SEAN FLEMING screen name “Pucci” and his email address

chulomia@me.com, as the sender of the email and a ROMEYO

CALAVAREY email address prettyboyromeyo@yahoo.com as the

recipient of the email. A digital “carbon copy” of the email was sent to the

Bangladesh source. Later the same day, the Bangladesh source sent five

sets of MasterCard information and one American Express Card, along

with the means of identification of the cardholders to

prettyboyromeyo@yahoo.com. The list was then forwarded to

chulomia@me.com, screen name “Pucci.”

k. On or about April 16, 2009, SEAN FLEMING sent an email message to

ROMEYO CALAVAREY containing nine sets of stolen American

Express Card information, including means of identification of each

cardholder, along with the American Express Card numbers, expiration

dates, security codes, billing address, and contact telephone numbers.

SEAN FLEMING used the screen name “Pucci” and the email address

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dbravo718@gmail.com to transmit the email. ROMEYO CALAVAREY

used the screen name “Romeyo calavarey Malawtic Surreal” and the email

address prettyboyromeyo@yahoo.com to receive it.

l. On or about April 29, 2009, SIMON CARTER sent a Western Union

electronic funds transfer from Brooklyn, New York to a Bangladesh

conspirator “Mohammed Solaiman” in Dhaka, Bangladesh, in the amount

of $200, which converted to 13,475.23 Takas, the currency of Bangladesh,

as payment for stolen credit card information and corresponding means of

identification belonging to the cardholders sold by the Bangladesh

conspirator to SIMON CARTER and his co-conspirators.

m. On or about May 5, 2009, ALEXANDER LEWIS, using his email

account lewisalexander@ymail.com, sent an email message to

chulomia@me.com, used by SEAN FLEMING. The email message

contained a stolen CitiBank MasterCard number ending in 8214 belonging

to PM of Canton, Georgia. Within a week, SEAN FLEMING used the

the stolen MasterCard number and means of identification of PM to

book four tickets on United Airlines, four tickets on Spirit Airlines, three

tickets on Frontier Airlines, five tickets on Delta Air Lines, and one ticket

on Virgin America Airlines for customers of the conspiracy. The total in

fraudulent charges on the PM MasterCard was $7,228.98.

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n. On or about May 11, 2009, ROMEYO CALAVAREY used 347-546-

7072 to exchange a series of text messages with SIMON CARTER, who

was using 347-479-3674, to negotiate the sale of stolen credit card

information from a Bangladesh source to SIMON CARTER. ROMEYO

CALAVAREY sent the payee information to SIMON CARTER via text

messaging, instructing that the purchase of the stolen credit card

information be accomplished by a Western Union electronic transfer of

funds to “Mohammed Solaiman” in Dhaka, Bangladesh.

o. On or about May 11, 2009, SIMON CARTER sent a Western Union

electronic funds transfer from Brooklyn, New York to a Bangladesh

conspirator “Mohammed Solaiman” in Dhaka, Bangladesh, in the amount

of $250, which converted to 16,844.73 Takas, the currency of Bangladesh,

as payment for stolen credit card information and corresponding means of

identification belonging to the cardholders sold by the Bangladesh

conspirator to SIMON CARTER and his co-conspirators.

p. On or about May 12, 2009, a Bangladesh conspirator using

geezybeary@yahoo.com, sent an email to ROMEYO CALAVAREY at

romeyoc@gmail.com, which contained one stolen American Express Card

ending in 81002, belonging to JS of Cincinnati, Ohio, and two stolen

MasterCard numbers, the first one ending in 5262, belonging to JH of

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Zanesville, Ohio, and the other one ending in 4025, belonging to JP of

Worthington, Kentucky. Within a few minutes, ROMEYO

CALAVAREY forwarded the email containing the stolen credit card

information to SIMON CARTER at zaramgt@yahoo.com.

q. On or about June 21, 2009, STEVEN JAMES PALMER opened a T-

Mobile account for a new Google G1 Android cell phone, 407-690-1305,

which he provided to the conspiracy.

r. On or about June 24, 2009, STEVEN JAMES PALMER and GERARD

DORIEN BATES, relocated their scheme from Orlando, Florida, to Los

Angeles, California, where STEVEN JAMES PALMER sublet an

apartment at 6016 Carlton Way, Los Angeles, California (“the Carlton Way

apartment”). The Carlton Way apartment was equipped with Internet

access through an AT&T Internet Services account, which was used by

STEVEN JAMES PALMER and GERARD DORIEN BATES to access

the online reservation systems of Northwest Airlines and United Airlines.

s. On or about July 2, 2009, STEVEN JAMES PALMER received a text

message on his iPhone, 646-884-1166, from 407-690-1305 (the Google G1

Android cell phone that STEVEN JAMES PALMER had provided to the

conspiracy), which stated: “Aisha Walker (dtw 2 atl) 2morrow night @

7p.m. last flight out!”

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t. On or about July 3, 2009, a cash payment of $162.20 was made to United

Airlines to purchase a one-way ticket for Aisha Walker to fly from Detroit,

Michigan (airport code “DTW”) to Atlanta, Georgia (airport code “ATL”).

The cash payment was made at the ticket counter at the Los Angeles

International Airport. The online reservation for the ticket captured the IP

address at the time of the reservation, which was the AT&T account at the

Carlton Way apartment. The reservation information also contained the

telephone number for GERARD DORIEN BATES, 313-903-4779, and

his email address, gerardbates@gmail.com.

u. On or about July 6, 2009, GERARD DORIEN BATES, left Los Angeles,

California, to continue his role in the conspiracy at his residence in Detroit,

Michigan. GERARD DORIAN BATES flew from Los Angeles to

Detroit on United Airlines, using a ticket purchased with an American

Express Card ending in 62001, which belonged to MW of Louisville,

Kentucky. The email address that was used for the booking was

gerardbates@gmail.com. The IP address used to book the ticket was the

AT&T account at the Carlton Way apartment.

v. On or about July 10, 2009, STEVEN JAMES PALMER received an

email to his account at hazegpiffnten@gmail.com, which he stored on his

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iPhone, 646-884-1166. The email contained forty sets of stolen American

Express Card information, including the following:

Cardholder Initials and Address Last Five Digits of the Card

VV, North Haven, Connecticut 31007

GL, Denville, New Jersey 94009

CM, Smithtown, New York 41012

AV, Carmel, New York 25013

MC, Leesburg, Virginia 62012

DF, Las Vegas, Nevada 61007

JM, Newtown, Connecticut 44002

DL, South Lion, Michigan 91003

w. On or about July 10, 2009, the Northwest Airlines online reservation

system received a ticket order for passengers Brezzy Hurst and Chrisjen

Ellis to travel from the Chicago O’Hare Airport to Atlanta, Georgia, which

was purchased with an American Express card ending in 31007, which

belonged to VV of North Haven, Connecticut, and such purchase was

without the authority of the cardholder and without lawful authority. The

email address used for the booking was discdisney@yahoo.com. The IP

address of the purchaser of the tickets was captured by the Northwest

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Airlines website, and at the time of the transaction it was assigned to the

Carlton Way apartment.

x. On or about July 10, 2009, the Northwest Airlines online reservation

system received a ticket order for passengers Dedhane Francis and David

Francis to travel from New York’s LaGuardia Airport to Birmingham,

Alabama, which was purchased with an American Express card ending in

94009, which belonged to GL of Denville, New Jersey, and such purchase

was without the authority of the cardholder and without lawful authority.

The email address used for the booking was toifrancis@live.com. The IP

address of the purchaser of the tickets was captured by the Northwest

Airlines website, and at the time of the transaction it was assigned to the

Carlton Way apartment.

y. On or about July 10, 2009, GERARD DORIEN BATES, using 313-903-

4779, sent a text message to STEVEN JAMES PALMER, who was using

646-884-1166, requesting the purchase of an airline ticket for: “Lashawn

Bailey (clt to atl) @ 3:10p.m. on delta operated northwest airlink!”

z. On or about July 11, 2009, the Northwest Airlines online reservation

system received a ticket order for passenger Lashawn Daniels to travel

from CLT (Charlotte, North Carolina) to ATL (Atlanta, Georgia), which

was purchased with an American Express card ending in 41012, which

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belonged to CM of Smithtown, New York, and such purchase was without

the authority of the cardholder and without lawful authority. The email

address used for the booking was toifrancis@live.com. Approximately

five hours later, GERARD DORIEN BATES, using 313-903-4779, sent

a text message to STEVEN JAMES PALMER, who was using 646-884-

1166, which stated: “U spelled her name wrong on delta lashawn bailey not

daniels!!”

aa. On or about July 11, 2009, GERARD DORIEN BATES, using 313-903-

4779, sent a text message to STEVEN JAMES PALMER, who was using

646-884-1166, requesting the purchase of an airline ticket for: “Chelly

Massie & Tanisha Owens (DTW to ATL) @ 4:00p.m. or 5p.m.on Delta or

United.”

bb. On or about July 11, 2009, the Northwest Airlines online reservation

system received a ticket order for passengers Chelly Massie and Tanisha

Owens to travel from DTW (Detroit, Michigan) to ATL (Atlanta, Georgia),

which was purchased with an American Express card ending in 25013,

which belonged to AV of Carmel, New York, and such purchase was

without the authority of the cardholder and without lawful authority. The

email address used for the booking was gerardbates@gmail.com. The IP

address of the purchaser of the tickets was captured by the Northwest

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Airlines website, and at the time of the transaction it was assigned to the

Carlton Way apartment.

cc. On or about July 11, 2009, the Northwest Airlines online reservation

system received a ticket order for passenger Bridget Scott to travel from

New York’s LaGuardia Airport to Birmingham, Alabama, which was

purchased with an American Express card ending in 62012, which

belonged to MC of Leesburg, Virginia, and such purchase was without the

authority of the cardholder and without lawful authority. The email

address used for the booking was bangolsen@aol.com. The IP address of

the purchaser of the tickets was captured by the Northwest Airlines

website, and at the time of the transaction it was assigned to the Carlton

Way apartment.

dd. On or about July 11, 2009, the Northwest Airlines online reservation

system received a ticket order for passengers Dedhane Francis and David

Francis to travel from New York’s LaGuardia Airport to Birmingham,

Alabama, which was purchased with an American Express card ending in

62012, which belonged to MC of Leesburg, Virginia, and such purchase

was without the authority of the cardholder and without lawful authority.

The email address used for the booking was bangolsen@aol.com. The IP

address of the purchaser of the tickets was captured by the Northwest

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 22 of 31

Airlines website, and at the time of the transaction it was assigned to the

Carlton Way apartment.

ee. On or about July 11, 2009, STEVEN JAMES PALMER, using 646-884-

1166, sent a text message to GERARD DORIEN BATES, using 313-

903-4779. The text message transmitted a means of identification of DF,

a resident of Las Vegas, Nevada, together with DF’s American Express

Card number ending in 61007, and the expiration date and security code for

that access device, without the authority of the cardholder and without

lawful authority.

ff. On or about July 11, 2009, GERARD DORIEN BATES used 313-903-

4779, to send a text message to STEVEN JAMES PALMER, at 646-884-

1166, which stated: “Marlon Thomas and Tracy Thomas roundtrip from

Las Vegas to Buffalo on Sunday July 12 on the earliest possible flight.

And returning Tuesday July 14 in the evening. I need a one way ticket for

Aniah Thomas, on the same flight going to Buffalo, NY.”

gg. On or about July 12, 2009, DF’s American Express Card ending in 61007

was used, without authority, to book a ticket via the Internet website

“Expedia.com,” for a United Airlines ticket for passenger Marlon Thomas

to fly from Las Vegas, Nevada, to Buffalo, New York, with a stop in

Chicago, Illinois, on July 12, 2009.

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 23 of 31

hh. On or about July 12, 2009, Tracy Thomas was booked on the same United

Airlines flight as Marlon Thomas to fly from Las Vegas, Nevada, to

Buffalo, New York, with a stop in Chicago, Illinois. The American

Express Card number used to purchase the Tracy Thomas ticket ended in

44002, which belonged to JM of Newtown, Connecticut, and was used

without the authority of the cardholder and without lawful authority.

ii. On or about July 12, 2009, Aniah Thomas was booked on the same United

Airlines flight as Marlon and Tracy Thomas to fly from Las Vegas,

Nevada, to Buffalo, New York, with a stop in Chicago, Illinois. The

American Express Card number used to purchase the Aniah Thomas ticket

ended in 91003, which belonged to DL of South Lion, Michigan, and was

used without the authority of the cardholder and without lawful authority.

The source IP address for the Internet bookings of the Aniah Thomas,

Marlon Thomas, and Tracy Thomas flights from Las Vegas to Buffalo was

98.149.171.74, which was a Time/Warner Roadrunner account for Lavinia

Welch of Valley Village, California.

jj. On or about July 12, 2009, STEVEN JAMES PALMER sent an text

message to the Bangladesh source for stolen credit card information which

informed the Bangladesh source that STEVEN JAMES PALMER had

sent Western Union payment information to an email account for the

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 24 of 31

Bangladesh source, and STEVEN JAMES PALMER requested an

additional batch of 30 sets of stolen credit card information, for which

STEVEN JAMES PALMER would pay the Bangladesh source $500.

kk. On or about July 12, 2009, STEVEN JAMES PALMER received an

email to his account at hazegpiffnten@gmail.com, which he stored on his

iPhone, 646-884-1166. The email contained thirty-three sets of stolen

American Express Card information, including the following:

Cardholder Name and Address Last Five Digits of the Card

PD, Manahawkin, New Jersey 51003

JC, Potomac Falls, Virginia 92036

ll. On or about July 13, 2009, GERARD BATES, using the email account

gerardbates@gmail.com, forwarded an email to the STEVEN PALMER

email account, hazegpiffnten@gmail.com, stating: “Kenneth Ellison Kenya

Chavis Going to Houston.” Later the same day, a second email was

forwarded in the same manner, which stated: La shawn Bailey Chelly

Massie Tanisha Owens Leaving tomorrow evening to Charlotte all three.”

Later the same day, the Northwest Airlines website reservation system

received online orders to purchase tickets, from an IP address assigned at

that time to the Carlton Way apartment, in Los Angeles, California. The

first two tickets purchased in this fashion were for passengers Kenneth

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 25 of 31

Ellison and Kenya Chavis to fly from Atlanta, Georgia, to Houston, Texas,

and the method of payment was an American Express card ending in

51003, which belonged to PD of Manahawkin, New Jersey. The American

Express Card was used without the authority of the cardholder and without

lawful authority. Less than an hour later, three tickets were purchased in

the same fashion for passengers Chelly Massie, Tanisha Owens, and

Lashawn Bailey, to fly from Atlanta, Georgia, to Charlotte, North Carolina,

on the same Northwest flight, and the method of payment was an American

Express Card ending in 92036, which belonged to JC of Potomac Falls,

Virginia. The email address given by the purchaser for all five flights was

gerardbates@gmail.com.

mm. On or about November 22, 2009, TERMAIN BRICE, used the Verizon

internet connection at his residence, 1019 Burke Avenue, Bronx, New

York, to make three attempts to purchase a United Airlines ticket for

KAREEM NELSON, who was requesting to fly from White Plains, New

York, to Atlanta. The three tickets were attempted to be charged to the

American Express accounts of: RS of Ridgefield, Washington, ending in

53000; BH of Kansas City, Missouri, ending in 81005; and RB of Grove

City, Ohio, ending in 03004.

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 26 of 31

nn. On or about March 25, 2010, TERMAIN BRICE, used his cell phone,

917-449-8933, to exchange text messages and voice calls regarding five

passengers to travel from Atlanta, Georgia, to Kansas City, Missouri, on

Delta Air Lines. Three of the passengers were booked using a stolen

Discover Card number ending in 8447, belonging to KT of Grapeland,

Texas, and the other two passengers were booked using a stolen Discover

Card number ending in 5369, belonging to KH of Windsor, Connecticut.

oo. On or about March 27, 2010, TERMAIN BRICE, used his cell phone,

917-449-8933, to exchange text messages regarding two passengers to

travel from Kansas City, Missouri, to Houston, Texas on Delta Air Lines.

Both passengers were booked using a stolen Discover Card number ending

in 7484, belonging to MB of Evansville, Indiana.

All in violation of Title 18, United States Code, Section 371.

COUNT TWO

(Access Device Fraud)

On or about October 28, 2008, in the Western District of Missouri and elsewhere,

STEVEN JAMES PALMER, did knowingly and with intent to defraud, effect financial

transactions using an access device consisting of an American Express Card number ending in

2016, without the authority of the cardholder, RW, of Tulsa, Oklahoma, by which STEVEN

JAMES PALMER intended to receive things of an aggregate value of at least $1,000 during

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 27 of 31

a one-year period, consisting in part of a Delta Airlines ticket for Troy Sampson to travel from

Atlanta, Georgia, to Kansas City, Missouri, and which transactions affected interstate commerce;

all in violation of Title 18, United States Code, Sections 1029(a)(5) and 1029(b)(1).

COUNT THREE

(Aggravated Identity Theft)

On or about October 28, 2008, in the Western District of Missouri, and elsewhere

STEVEN JAMES PALMER did knowingly and without lawful authority transfer, use, and

possess one or more means of identification, consisting of an American Express Card number

ending in 2016, of another person, namely RW of Tulsa, Oklahoma, during and in relation to a

felony offense, that being access device fraud as defined by Chapter 47, Title 18, United States

Code, Section 1029(a)(5), by effecting financial transactions consisting of the purchase of airline

tickets, the aggregate cost of which was in excess of $1,000 in a one-year period, using the stolen

American Express Card number ending in 2016, and other identifying information of RW of

Tulsa, Oklahoma, without his knowledge and authority, which actions were in and affected

interstate commerce; all in violation of Title 18, United States Code, Section 1028A(a)(1).

COUNTS FOUR through NINE

(Access Device Fraud)

1. The Grand Jury incorporates by reference paragraphs one through four of Count One

of the Indictment as if fully set forth herein.

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 28 of 31

2. On or about the dates alleged below, in the Western District of Missouri and

elsewhere, in furtherance of the conspiracy to commit access device fraud and aggravated

identity theft and to accomplish the goals of the conspiracy’s scheme to defraud the airlines, the

credit and debit card issuers and their cardholders, who were the identity theft victims,

defendants TERMAIN BRICE and his accomplices did knowingly and with intent to defraud,

effect and attempt to effect financial transactions using access devices consisting of the accounts

described in each count below and issued in the names of the identity theft victims below, by

which TERMAIN BRICE and his accomplices received things of an aggregate value equal to

and exceeding $1,000 during a one-year period, and which transactions affected interstate

commerce, as follows:

Counts Dates Amount Credit Issuer ID Theft Victim

4 11/22/2009 $502.20 American Express RS, Ridgefield, WA

5 11/22/2009 $502.20 American Express BH, Kansas City, MO

6 11/22/2009 $502.20 American Express RB, Grove City, OH

7 03/25/2010 $1,088.10 Discover Card KT, Grapeland, TX

8 03/25/2010 $725.40 Discover Card KH, Windsor, CT

9 03/27/2010 $651.80 Discover Card MB, Evansville, IN

All in violation of Title 18, United States Code, Sections 1029(a)(5) and 2.

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 29 of 31

COUNTS TEN through FIFTEEN

(Aggravated Identity Theft)

1. The Grand Jury incorporates by reference paragraphs one through four of Count One

of the Indictment as if fully set forth herein.

2. On or about the dates listed below, in the Western District of Missouri and elsewhere,

in furtherance of the conspiracy to commit access device fraud and aggravated identity theft and

to accomplish the goals of the conspiracy’s scheme to defraud the airlines, the credit and debit

card issuers and their cardholders, who were the identity theft victims, by transferring,

possessing, and using means of identification of the identity theft victims consisting of stolen

credit and debit card numbers, together with the cardholder names, expiration dates, security

codes, and billing addresses to effect and attempt to effect transactions with access devices

issued to the identity theft victims to receive payment and things of value, consisting of

confirmation codes for airline tickets, the passenger seats associated with each ticket

confirmation code, and payments of money from customers requesting the tickets, the aggregate

value of which was in excess of $1,000 during a one-year period, TERMAIN BRICE,

defendant herein, did knowingly and without lawful authority transfer, use, and possess one or

more means of identification of other persons, as identified in each count below, during and in

relation to a predicate felony offense, that being access device fraud as defined by Chapter 47,

Title 18, United States Code, Section 1029(a)(5), and such actions were in or affected interstate

commerce, as follows:

Case 4:09-cr-00218-HFS Document 113 Filed 05/05/10 Page 30 of 31

Counts Dates Airline Tickets Purchased: ID Theft Victims

10-12 11/22/09 White Plains, NY to RS, Ridgefield, WA

Atlanta, GA BH, Kansas City, MO

RB, Grove City, OH

13-14 03/25/10 Atlanta, GA to KT, Grapeland, TX

Kansas City, MO KH, Windsor, CT

15 03/27/10 Kansas City, MO MB, Evansville, IN

Los Angeles, California

All in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.

A TRUE BILL.

_/s/ David W. Lewis, Jr._______________

FOREPERSON OF THE GRAND JURY

_/s/ John E. Cowles / /s/ Matt Hiller__

John E. Cowles #11797 and Matt Hiller

Assistant United States Attorneys

__5/5/10___________________

Date

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