Press Release For Immediate Release
September 8, 2003
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U.S. Department of
Justice
United States Attorney
Central District of California
Contact: James W. Spertus
Assistant United States Attorney
(213) 594-5872
Thom Mrozek
Public Affairs Officer
(213) 894-6947
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A Vista, California man has pleaded guilty to six counts of wire fraud
in connection with a sophisticated scheme to steal nearly $600,000 of
computer equipment from businesses in Wenham, Massachusetts and Santa
Barbara, California. Brian Tinney, 33, who pleaded guilty in United States
District Court in Los Angeles Tuesday afternoon, set up a fictitious corporation
named Data Systems International, ostensibly located in Las Vegas, Nevada.
Data Systems had a fully featured website and claimed to be in the business
of selling computer equipment. In addition, Tinney set up a sham escrow
company called American Escrow Corporation, which also had an elaborate
website, that he claimed was located in San Francisco.
Tinney's scheme was to use Data Systems to order computer gear from legitimate
companies and to promise payment from through the bogus escrow company.
An associate at the fraudulent escrow company would report to the intended
victims at the legitimate companies 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 with the expectation that once the computer
equipment was received the funds held in escrow would be released. Tinney,
using an alias and false identification, planned to receive the computer
equipment at Data Systems' Las Vegas mail drop.
FBI cyber-crime investigators in Los Angeles were contacted by a victim
company in Massachusetts that had grown suspicious of a business arrangement
with Tinney. The Massachusetts company was planning on shipping approximately
$500,000 worth of Cisco computer equipment to Data Systems. The federal
investigators determined that both the computer and escrow companies were
nothing more than shell companies and that the web sites of both companies
had been repeatedly accessed by someone in Vista, California.
Subsequent investigation revealed that another victim company in Santa
Barbara, 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 Las Vegas mail drop and arrested Tinney as he attempted to
take possession of the computer equipment that had been shipped from Massachusetts.
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 subsequently indicted on wire fraud charges by a federal
grand jury in Los Angeles.
Tinney pleaded guilty Tuesday before United States District Judge Margaret
M. Morrow in Los Angeles to all six counts of wire fraud charged in the
indictment.
Tinney is scheduled to be sentenced on December 22. At that time, he faces
a maximum sentence of 30 years in prison and a fine of $1.5 million.
CONTACT: Assistant United States Attorney James W. Spertus
(213) 894-5872
Release No. 03-118
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