2 Florida Men Plead Guilty To Multimillion-Dollar Credit Card Fraud Scheme
summary
James Beckish and Joseph Anthony DeMaria, both of Miami, pled guilty to conspiracy to commit wire fraud for operating sham online nutraceutical companies that fraudulently billed thousands of consumers over $7 million through unauthorized recurring credit card charges, leading to massive chargebacks and agreements to forfeit $7.2 million in restitution.
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James Beckish and Joseph Anthony DeMaria pled guilty to conspiracy to commit wire fraud for orchestrating a scheme between 2013 and 2017 that generated over $7 million in unauthorized credit card charges. They used dozens of fake internet companies selling nutraceuticals to bill consumers who never ordered products or never received them, relying on purchased or fraudulently obtained card data and evading detection by frequently changing business identities. Both defendants agreed to forfeit $7,231,878 and pay restitution, and each faces a maximum of five years in prison, with sentencing scheduled for January 2019.
narrative
James Beckish and Joseph Anthony DeMaria, both of Miami, Florida, pled guilty to conspiracy to commit wire fraud for running a multimillion-dollar credit card fraud scheme between 2013 and 2017. They created and operated dozens of sham online companies that falsely advertised nutraceutical products but never shipped most items, instead using purchased or fraudulently acquired credit card data to repeatedly bill consumers without consent. Internal communications revealed their intent, with DeMaria asking, 'Are we shipping these guys actual nutra products? Lol.' and Beckish replying, 'Nope.' The scheme triggered extremely high chargeback rates—often exceeding 20%—forcing credit card processors to issue millions in refunds to affected consumers. To evade detection, the defendants frequently shut down and replaced companies as processors flagged them for fraud. In total, their actions caused over $7 million in losses, leading to a forfeiture agreement of $7,231,878 and mandatory restitution. The U.S. Secret Service investigated the case, and the Southern District of New York’s Complex Frauds and Cybercrime Unit prosecuted it; both defendants face up to five years in prison, with sentencing set for January 2019.
Classified cyber-fraud(confidence 100%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Parties
florida menGeoffrey S. Berman
Keywords
credit cardbeckish demariabeckishdemariacreditcompaniescarddemaria pledschemelinkconsumersproductsplead multimillion-dollarmultimillion-dollar creditcard fraud
Extracted insights
Dollar amounts 3
- $7.23M $7,231,878 $1M–$10M
- $7.00M $7 Million $1M–$10M
- $7.00M $7 million $1M–$10M
Entities 2
- person florida men
- person Geoffrey S. Berman
Triples 11
- Florida Men Plead Guilty Multimillion-Dollar Credit Card Fraud Scheme
- Geoffrey S. Berman Announced JAMES BECKISH and JOSEPH ANTHONY DEMARIA pled guilty to one count of conspiracy to commit wire fraud
- BECKISH and DEMARIA Pled Guilty Before United States District Judge Edgardo Ramos
- BECKISH, DEMARIA and others Created and Operated Dozens of companies that purported to sell dietary supplements and similar products called 'nutraceuticals' over the internet
- The defendants Used Websites of the defendants’ companies as a cover for unauthorized and recurring charges
- DEMARIA Asked BECKISH: 'Are we shipping these guys actual nutra products? Lol.'
- BECKISH Responded 'Nope.'
- BECKISH and DEMARIA Pled Guilty To causing more than $7 million in loss during the duration of the scheme
- BECKISH and DEMARIA Agreed to Pay Restitution And to forfeit $7,231,878
- Sentencing for BECKISH Is Scheduled For January 16, 2019 at 12:30 p.m. before Judge Ramos
- Sentencing for DEMARIA Is Scheduled For January 18, 2019 at 12:30 p.m. before Judge Ramos
Extracted body text (4,323c)
Press Release 2 Florida Men Plead Guilty To Multimillion-Dollar Credit Card Fraud Scheme Thursday, October 11, 2018 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Defendants Used Companies to Cause More Than $7 Million in Unauthorized Charges to Thousands of Consumers Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JAMES BECKISH and JOSEPH ANTHONY DEMARIA pled guilty to one count of conspiracy to commit wire fraud in connection with a scheme to make unauthorized charges on credit cards through sham companies that purportedly offered nutraceutical products for sale over the internet. BECKISH and DEMARIA pled guilty before United States District Judge Edgardo Ramos. According to the Complaint, the Information to which BECKISH and DEMARIA pled guilty, and statements made during the proceedings today: Between 2013 and 2017, BECKISH, DEMARIA and others, created and operated dozens of companies that purported to sell dietary supplements and similar products called “nutraceuticals” over the internet. The websites of the defendants’ companies purported to sell products like dietary supplements but, in reality, were primarily used to repeatedly bill consumers who never ordered their products, or even if they did, almost never received them. The defendants used these websites as a cover for unauthorized and recurring charges that were placed on thousands of credit card numbers that the defendants had purchased or obtained, or had acquired from consumers who had attempted to order the products in question. For example, in one email, DEMARIA asked BECKISH: “Are we shipping these guys actual nutra products? Lol.” To which BECKISH responded: “Nope.” BECKISH, DEMARIA, and others created these different companies and websites, because they knew that credit card processors would stop doing business with them over time as consumers noticed the unauthorized charges and sought refunds. These refunds, called “chargebacks” by credit card processors, are generally low for legitimate businesses but reached extremely high percentages for many of the companies associated with the defendants’ scheme. In certain instances, the chargeback rates quickly approached or even exceeded 20 percent – that is, consumers were seeking refunds of more than 20 percent of the charges placed by certain of the defendants’ companies. Credit card processors, in turn, paid millions of dollars in refunds for fraudulent charges associated with the defendants’ companies between 2013 and 2017 in attempts to refund affected consumers. In total, BECKISH and DEMARIA both pled guilty to causing more than $7 million in loss during the duration of the scheme. * * * BECKISH, 32, of Miami, Florida, and DEMARIA, 33, of Miami, Florida, each plead guilty to one count of conspiracy, which carries a maximum sentence of five years in prison. BECKISH and DEMARIA also agreed to pay restitution and to forfeit $7,231,878. Sentencing for BECKISH is scheduled for January 16, 2019 at 12:30 p.m. before Judge Ramos. Sentencing for DEMARIA is scheduled for January 18, 2019 at 12:30 p.m. before Judge Ramos. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentence imposed on the defendants will be determined by the judge. Mr. Berman praised the investigative work of the Secret Service. This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Sassoon, Olga Zverovich, and Michael McGinnis are in charge of the prosecution. Updated October 11, 2018 Component USAO - New York, Southern Press Release Number: 18-348
OCR text (4,323c · plain-text · 99% conf)
Press Release 2 Florida Men Plead Guilty To Multimillion-Dollar Credit Card Fraud Scheme Thursday, October 11, 2018 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Defendants Used Companies to Cause More Than $7 Million in Unauthorized Charges to Thousands of Consumers Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that JAMES BECKISH and JOSEPH ANTHONY DEMARIA pled guilty to one count of conspiracy to commit wire fraud in connection with a scheme to make unauthorized charges on credit cards through sham companies that purportedly offered nutraceutical products for sale over the internet. BECKISH and DEMARIA pled guilty before United States District Judge Edgardo Ramos. According to the Complaint, the Information to which BECKISH and DEMARIA pled guilty, and statements made during the proceedings today: Between 2013 and 2017, BECKISH, DEMARIA and others, created and operated dozens of companies that purported to sell dietary supplements and similar products called “nutraceuticals” over the internet. The websites of the defendants’ companies purported to sell products like dietary supplements but, in reality, were primarily used to repeatedly bill consumers who never ordered their products, or even if they did, almost never received them. The defendants used these websites as a cover for unauthorized and recurring charges that were placed on thousands of credit card numbers that the defendants had purchased or obtained, or had acquired from consumers who had attempted to order the products in question. For example, in one email, DEMARIA asked BECKISH: “Are we shipping these guys actual nutra products? Lol.” To which BECKISH responded: “Nope.” BECKISH, DEMARIA, and others created these different companies and websites, because they knew that credit card processors would stop doing business with them over time as consumers noticed the unauthorized charges and sought refunds. These refunds, called “chargebacks” by credit card processors, are generally low for legitimate businesses but reached extremely high percentages for many of the companies associated with the defendants’ scheme. In certain instances, the chargeback rates quickly approached or even exceeded 20 percent – that is, consumers were seeking refunds of more than 20 percent of the charges placed by certain of the defendants’ companies. Credit card processors, in turn, paid millions of dollars in refunds for fraudulent charges associated with the defendants’ companies between 2013 and 2017 in attempts to refund affected consumers. In total, BECKISH and DEMARIA both pled guilty to causing more than $7 million in loss during the duration of the scheme. * * * BECKISH, 32, of Miami, Florida, and DEMARIA, 33, of Miami, Florida, each plead guilty to one count of conspiracy, which carries a maximum sentence of five years in prison. BECKISH and DEMARIA also agreed to pay restitution and to forfeit $7,231,878. Sentencing for BECKISH is scheduled for January 16, 2019 at 12:30 p.m. before Judge Ramos. Sentencing for DEMARIA is scheduled for January 18, 2019 at 12:30 p.m. before Judge Ramos. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentence imposed on the defendants will be determined by the judge. Mr. Berman praised the investigative work of the Secret Service. This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Danielle Sassoon, Olga Zverovich, and Michael McGinnis are in charge of the prosecution. Updated October 11, 2018 Component USAO - New York, Southern Press Release Number: 18-348