Press Release For Immediate Release
February 13, 2003
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U.S. Department of
Justice
FBI Press Release
FBI
Los Angeles Field Office
11000 Wilshire Blvd.
Los Angeles, Ca 900024
(310) 996-3341, 3342, 3343
Fax:(310) 996-3345
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A Vista, California man was indicted today by a federal grand jury with
six counts of wire fraud in connection with a meticulously constructed
scheme to steal nearly $600,000 of computer equipment from businesses
in Wenham, Massachusetts and Santa Barbara, California. The indictment
was announced today by Debra Yang, United States Attorney for the Central
District of California and Ronald L. Iden, Assistant Director in Charge
of the FBI in Los Angeles.
According to the indictment, Brian Tinney, 33, set up a fictitious corporation
named Data Systems International, ostensibly located in Las Vegas, Nevada,
complete with a fully featured web site. In addition, Tinney set up a
sham escrow company identified as American Escrow Corporation, also equipped
with an elaborate web site which he claimed was located in San Francisco,
California.
The fraudulent escrow company representative would report to the intended
victims that the required funds had been deposited into escrow for payment
of the computer equipment Tinney had negotiated to buy from victim companies.
These victim companies would ship computer equipment to Data Systems at
an address in Las Vegas with the expectation that once the computer equipment
was received by Data Systems, the funds held in escrow for payment would
be released. Tinney, using an alias and false identification, planned
to receive the computer equipment at Data Systems' Las Vegas address (nothing
more than a mail drop) and planned to sell the equipment on the black
market without ever paying the victims for their property, according to
the indictment.
FBI Los Angeles' cyber crime investigators were contacted by a victim
company in Massachusetts who had grown suspicious of a business arrangement
with Tinney. Investigators determined that the both the computer and escrow
companies were nothing more than shells and that the web sites of both
companies had been repeatedly accessed from the Vista, California area.
Subsequent investigation revealed that another victim company in Santa
Barbara, California, was preparing to ship an additional $100,000 in computer
equipment to the same mail drop.
In January 2003, undercover FBI Agents from Los Angeles and Las Vegas
staffed the mail drop location and arrested Tinney as he attempted to
take possession of the computer equipment. At the time of his arrest,
Tinney was in possession of various forms of false identification and
mobile telephones used to perpetrate the fraud scheme. Tinney was afforded
an initial appearance before a federal magistrate and was denied bail.
He is currently in federal custody at the Metropolitan Detention Center
in downtown Los Angeles.
This investigation is a reflection of the growing migration of traditional
crime problems to the Internet. Where once it would have been a labor
intensive and costly task to create the perception of viable businesses
in other states or countries, todays technology allows for such
activity to be conducted from a computer anywhere in the country or the
world.
Contact: Assistant United States Attorney James Spertus: 213 894-5872
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