Gone in 60 Seconds (bank fraud)

Last updated
Gone in 60 Seconds
Date2012
VenueVarious casinos
Location Southern California and Nevada, United States
Type Fraud scheme
CauseExploitation of a banking glitch
ParticipantsAra Keshishyan and accomplices
OutcomeOver $1 million stolen; arrests and convictions
Property damageOver $1 million stolen
Arrests14
ConvictionsAra Keshishyan guilty plea, sentences to 57 months imprisonment, other 13 faced up to five years in prison and $250,000

Gone in 60 Seconds was a fraud scheme uncovered in 2012 involving the theft of over $1 million from Citibank using cash advance kiosks at casinos located in Southern California and Nevada. [1]

Contents

Working scheme

Ara Keshishyan and accomplices opened CitiBank checking accounts, funding them with an initial balance. The group then traveled to various casinos and all made large withdrawals from bank kiosks simultaneously, exploiting a glitch that allowed them access to multiple times the funds of their initial balance. [2]

After garnering a sizable sum of money, allegedly illegally, from cash-advance kiosks, the suspects went on gambling sprees at casinos. [3] Some casinos gave them free rooms after mistaking them for people who spent a lot of money legitimately. [4] The gang reportedly also kept each individual withdrawal below $10,000, which is the threshold at which casinos must report the transaction to federal authorities. [5]

When Citibank noticed the discrepancies, it alerted the authorities, leading to an FBI-led investigation that resulted in the arrest of the suspects in a series of raids in southern California. [6]

Charging by FBI

Beginning in 2018, fifteen individuals were charged following an FBI-led investigation into the theft of over $1 million from Citibank using cash advance kiosks at casinos located in Southern California and Nevada.[ clarification needed ] [1] FBI agents assisted by the Glendale Police Department and the Los Angeles Police Department arrested 14 of the defendants in the Los Angeles area. [7]

Ara Keshishyan, the alleged ringleader of the operation, was accused of 14 cases of bank fraud, with each charge potentially punishable with up to 30 years imprisonment and a $1 million fine. [8] He entered a guilty plea to the charges in federal court on June 10, 2014, and on September 12 of that year was sentenced to 57 months' imprisonment. [9] [10] [11] The other 13 group members faced up to five years in prison and $250,000 in fines on charges of conspiracy to commit bank fraud and conspiracy to illegally structure financial transactions to avoid reporting requirements. [12] Twelve of his co-conspirators also pleaded guilty and received sentences ranging from probation to twelve months and one day's imprisonment, along with varying amounts of restitution due. One suspect remained a fugitive as of 2014. [10]

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References

  1. 1 2 "Hackers Steal $1 Million from Citibank". 31 October 2012.
  2. ↑ Ringleader Pleads Guilty to Million-Dollar Bank Fraud Conducted in California and Nevada Casinos
  3. ↑ Ktla.com: 14 Accused of Using Citibank Casino Kiosks to Run Scam
  4. ↑ Vcstar.com: Fillmore man among group accused of using casino kiosks to steal $1 million from bank
  5. ↑ "60-Second Cash Kiosk Hackers Steal $1 Million: FBI". Dark Reading.
  6. ↑ "FBI cuffs 14 over $1m 'Gone in 60 Seconds' casino scam". The Register .
  7. ↑ "FBI — Fourteen Charged in Million-Dollar 'Gone in 60 Seconds' Bank Fraud". FBI.
  8. ↑ "Ocean's 14 - high-speed bank fraud at casinos". 31 October 2012. Archived from the original on 7 December 2013.
  9. ↑ Phillips, Sandra (2014-06-10). "Leader in Citibank fraud conspiracy pleads guilty". Fox 5 San Diego, KSWB-TV. Retrieved 2022-12-27.
  10. 1 2 U.S. Attorney's Office, Southern District of California (2014-06-10). "Ringleader Pleads Guilty To Million Dollar Bank Fraud Conducted In California And Nevada Casinos" (Press release). US Department of Justice. Retrieved 2022-12-27.
  11. ↑ U.S. Attorney's Office, Southern District of California (2014-09-16). "Ringleader Sentenced For Million Dollar Bank Fraud Conducted In California And Nevada Casinos" (Press release). US Department of Justice. Retrieved 2022-12-27.
  12. ↑ "FBI Charges 14 In Casino Kiosk Scam". NBC News. 2 November 2012.[ dead link ]
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