Monday, May 6, 2002		Article

Pakistani ring indicted in computer scam

SIXTEEN members of a Pakistani ring accused of ripping off major computer makers for nearly $2 million were named in a 140-count indictment on charges including enterprise corruption, officials announced last week.

The defendants obtained expensive computer equipment using dummy companies validated by a smoke screen of phony credentials, and later sold the equipment to legitimate retailers at reduced prices, according to Queens District Attorney Richard Brown, who said the indictment was the result of a 24-month investigation.

The accused were also alleged to have used the same scheme to defraud a local automobile dealer of more than $ 2,00,000 worth of luxury cars and to fraudulently obtain government tax refunds of more than $ 25,000.

Three of the defendants were arrested last week, including alleged leader Tariq Khan, 41, officials said, adding that some of the defendants face up to 25 years in prison if convicted. "Through its alleged use of false identities and dummy companies, it was able to set up bank accounts, obtain business credit and evade or thwart effective credit checks, ultimately enabling the gang to lease expensive computer equipment which was never paid for and which was then sold to retailers for a handsome profit," Brown told Reuters

The investigation began in March 2000 when detectives investigating an unrelated computer fraud case obtained information from a major corporation that believed that it was being defrauded. A paper trail was uncovered that led back to the defendants, most of whom are Pakistani immigrants who, it is alleged, solicited other members of the Pakistani community in the metropolitan area to sell their personal identity information to the gang.