The US Department of Justice announced a 70-month jail sentence for Nevada resident Gareth David Long for defrauding more than 375,000 consumers of over $11 million. In November 2019, Long pleaded guilty to wire fraud and aggravated identity theft charges.
During 2008-13, Long ran a third-party payment processing company called V Internet Corp. He specialized in the creation and deposit of remotely-created checks (RCCs), which are created by the third-party payee. In January 2013, Long started using RCCs to steal from the bank accounts of consumers whose personal details he had acquired over the previous five years. He generated and deposited over 750,000 RCCs worth approximately $22 million. Through this scheme, Long managed to steal over $11 million in just six months.
The US Postal Inspection Service seized over $2.9 million along with property that Long had purchased with the illegal proceeds. During Long’s sentencing, the court also ordered forfeiture of around $11.2 million.
