Be aware of Identity Theft
Cool iPods also play stolen data
David Lazarus
Friday, April 7, 2006
IPods are totally cool for listening to music or watching videos. And now San Francisco police are saying they have another, way-less-cool capability: identity theft.
Police say a San Francisco man has been arrested on 53 felony counts of fraud, forgery and other charges related to the theft of hundreds of credit card numbers -- including those of House Minority Leader Nancy Pelosi and a special agent in the local office of the FBI.
Making the case even more audacious, police say, is the fact that some of the stolen data were found on an iPod belonging to the suspect. Investigators say this is the first time they've seen an iPod -- which is essentially a small computer -- used to store people's personal information.
"These devices create a whole new challenge for law enforcement," said Lt. Kenwade Lee, who runs the fraud division at the San Francisco Police Department. "It's a whole lot easier to walk around with an iPod than a case full of papers."
The suspect, identified as Wilson Lee, 35, is scheduled to appear in court on Monday. He remains in custody after pleading not guilty after his arrest on Oct. 26.
If convicted on all the charges against him, Lee faces a maximum sentence of 15 years in state prison.
Details of the case became clear only recently as investigators pieced together the extensive amount of data and documents involved.
"We're only starting to itemize things," the SFPD's Lee said. "The suspect isn't talking to us, so it's taking time."
Brian Petersen, Wilson Lee's San Francisco attorney, acknowledged that his client "faces a tough time at trial based on the evidence they have."
"The issue is not whether he did something wrong," Petersen said. "The issue is whether he was the only one responsible."
Police say they caught Lee red-handed in a sting operation in which a plainclothes officer delivered a shipment of laptop computers ordered by the suspect using a stolen credit card and a counterfeit driver's license.
The computers were delivered to the high-end Grosvenor Suites hotel on Nob Hill, one of about a half-dozen swanky hotels that police say Lee had been staying at for months using stolen identities and credit cards.
Police say Lee was arrested after he signed for receipt of the computers on the sidewalk outside the Grosvenor Suites using the name of a San Francisco attorney whose wallet was reported stolen from his Mercedes a few days earlier.
At the time of his arrest, Lee was in possession of a laptop and an iPod containing dozens of tax returns, credit files and loan applications from people throughout the country, police say.
A subsequent search of Lee's hotel room turned up a list of more than 500 names and credit card numbers, they say.
Among the names investigators said they recognized were those of San Francisco's Pelosi, the House Democratic leader in Congress, and LaRae Quy, spokeswoman for the FBI's San Francisco office.
Both names are also cited in court documents related to the case. Neither Pelosi nor Quy could be reached for comment.
"We still have no idea where he got all this stuff," the SFPD's Lee said.
He speculated that the suspect may have been in the process of uploading various files from his laptop to the iPod at the time of his arrest.
"This is new for us," Lee said. "Obviously, we're going to start paying more attention to electronic music players from now on."
According to court documents, Wilson Lee embarked on the fraud spree in June 2005, running up bills at luxury hotels with stolen identities and credit cards.
He also allegedly placed a series of orders with companies that rent computer equipment for corporate meetings and other events. The orders involved thousands of dollars of gear, court documents say.
In mid-October, San Francisco attorney David Sohn reported to police that his Mercedes had been broken into while parked overnight in North Beach.
"I got to my car the next morning and found the door open," he told me. "The car had been cleared out, including my wallet."
Within a few days, Sohn said he received a warning from a credit card issuer that his card had been used to purchase an iPod from a vending machine at the downtown Argent Hotel. (Such machines are increasingly common at hotels, airports and other venues.)
Shortly thereafter, Sohn said he received a call from a computer-rental firm confirming an order placed in his name for a bunch of laptops. He promptly contacted police investigators, who attempted to nab the perpetrator when the computers were delivered.
Whoever ordered the gear didn't show up when the computers were delivered to a hotel by a plainclothes cop.
A day or two later, though, Sohn was notified of yet another computer order, and once again he arranged for a police officer to make the delivery. This time, police say, someone was there to sign for the delivery: Wilson Lee.
"We figure he was ordering all these computers and then turning around and selling them," the SFPD's Lee said.
He said that between the computer purchases, the data-loaded iPod and the cache of credit card numbers, it appears that Wilson Lee was an unusually clever thief.
"He's very good at what he does," the police lieutenant said.
Petersen, Wilson Lee's attorney, acknowledged that a considerable body of evidence seems to tie his client to the alleged crimes. He indicated that negotiations are under way for Lee to plead guilty to at least some of the charges facing him.
"The issue is what an appropriate sentence would be if he pleads guilty," Petersen said.
He said at least three other people may have been involved in the case and noted that a video camera at the Argent Hotel's iPod vending machine captured someone other than his client using Sohn's credit card to make the purchase.
Petersen declined to comment on whether Lee would be willing to cooperate with authorities in return for a lighter sentence.
San Francisco District Attorney Kamala Harris noted that high-tech gadgets like laptops and iPods make identity theft and fraud all too easy.
"Perpetrators of identity theft are using increasingly sophisticated methods, and many serious white-collar crimes are now being committed primarily online," she said. "My office is committed to holding identity thieves accountable."
The SFPD's Lee said that, if nothing else, Lee's case highlights how things like iPods make data more portable than ever before.
"You want to think about that when you see people listening to iPods at a company where they have lots of information," he said. "They might not be listening to music."
David Lazarus' column appears Wednesdays, Fridays and Sundays. Send tips or feedback to [email protected].
Zim Ratifies SADC Protocol On Fugitives
FUGITIVES from justice will soon have no hiding place as steps are being taken to harmonise legal systems in the Southern African Development Community (Sadc), in addition to strengthening domestic regulatory and supervisory systems for the monitoring and detection of organised crime in United Nations member-states
To this end, last Wednesday, the House of Assembly ratified two protocols that deal with crime in the region and abroad. The first was the Sadc Protocol on Mutual Legal Assistance in Criminal Matters that provides wide measures for legal co-operation between member-states in criminal matters. The second was the UN Convention Against Transnational Organised Crime that promotes effective co-operation among member-states in combating and preventing cross-border organised crime. The UN convention provides for the extradition of suspects wanted in connection with organised crime, including corruption. Legislators from both sides of the House consented to the protocols. Justice, Legal and Parliamentary Affairs Minister Cde Patrick Chinamasa told the House that the Sadc protocol would clear some of the legal hurdles that were faced when suspects wanted in connection with corruption fled to neighbouring countries. The minister said the document was central to efforts to harmonise legal systems in the region. He said any disputes between member-states in relation to mutual legal assistance would be referred to the tribunal for arbitration. Contributing to the debate, Mr David Coltart (MDC, Bulawayo South) said the opposition welcomed the Sadc protocol. "Our law enforcement agencies have had problems in combating crime that goes beyond our borders. This is good and a welcome addition to our statutes," said Mr Coltart. The Sadc protocol provides for co-operation in investigations, prosecutions or proceedings relating to offences involving transnational organised crime and corruption. Assistance shall be provided without regard to whether the conduct under investigation or prosecution in the requesting state constitutes an offence under the laws of the requested state. The protocol will go a long way in enabling Zimbabwean police to facilitate prosecution of suspects wanted in connection with corruption who have taken refuge in some Sadc countries, particularly South Africa. Member-states are obliged to facilitate the appearance of witnesses or the assistance of persons in investigations as well as taking measures to freeze or forfeit the proceeds of crime. Upon request, a person in custody in the requested state shall be temporarily transferred to the requesting state to assist investigations or testify, provided that the person consents. When the person transferred is required to be kept in custody under the law of the requested state, the requesting state shall hold that person in custody and shall return the person at the conclusion of the execution of the request. The requested state shall also execute a request for the search, seizure and delivery of property to the requesting state if the request includes information justifying such action under its laws. However, the protocol shall not apply to the arrest or detention of a person with a view to extradition or the transfer of persons in custody to serve sentences. It shall also not apply to enforcement in the requested state of criminal judgments imposed in the requesting state except to the extent permitted by the laws of the requested state. The UN Convention Against Transnational Organised Crime requires member-countries to establish domestic regulatory and supervisory systems for the monitoring and detection of organised crime. The convention also provides for the confiscation and seizure of proceeds from transnational organised crime. State parties may consider the possibility of requiring that an offender demonstrate the lawful origin of alleged proceeds of crime or other property liable to confiscation. Proceeds of crime or property confiscated by a state party shall be disposed of in accordance with its domestic law and administrative procedures. The extradition of suspects shall be subject to the conditions provided by the domestic law of the requested state or applicable extradition treaties, including conditions in relation to the minimum penalty for extradition. Moving a motion for the ratification of the convention, Deputy Minister of Home Affairs Cde Reuben Marumahoko told the House that the document was an effective legal tool in combating various forms of organised crime that included terrorism. Cde Marumahoko said the UN had created a fund to provide technical assistance in the implementation of the convention.
Zambia To Have Two More International Gateways
COMMUNICATIONS minister Abel Chambeshi on Thursday informed Parliament that Zambia would soon have two more international gateways to supplement Mwembeshi Earth Station.
Contributing to the motion to scrutinise the appointment of six individuals as members of the board of regulators for the Communications Authority, Chambeshi said another international gateway was in the process of being formed in Zambia.
He explained that the Zambia Telecommunications Company (Zamtel) was trying to lay a national network of fibre optic before the end of this year.
Chambeshi explained that the national network of fibre optic would act as another international gateway.
He said Zamtel and his ministry were currently negotiating with an organisation called Rascom (a Pan African Institution under the African Union) to set up a base in Lusaka to put up an all African Satellite into space.
We hope that this extension will be within the precincts as Mwembeshi Earth Station. This will become our third international gateway, Chambeshi said.
Chambeshi said whereas liberalisation was good, the nation should be careful not to kill the goose that lays the golden egg.
He said Zamtel was currently earning 60 per cent of its income from the international gateway.
Chambeshi said the government was actively investigating possibilities of liberalising the international gateway.
Chairperson of the select committee Joseph Kasongo said the Communications Authority should address the issue of another international gateway to supplement Mwembeshi Earth Station.
He noted over-reliance on Mwembeshi might one day create problems if it failed to work.
Kasongo argued that another gateway would help reduce communication costs.
Namwala UPND member of parliament Ompie Nkumbula-Liebenthal who seconded the motion said the Communications Authority played an important role in information dissemination.
She also called for adequate laws to mitigate against loss of privacy resulting from advances in telecommunication technologies.
Contributing to the motion, Chilanga UPND member of parliament Captain Cosmas Moono said mobile phone operators should be encouraged to roll out in rural areas.
Capt Moono advised government against liberalising the international gateway.
Communication is business and government is earning revenue from this facility controlled by Zamtel, Capt Moono said.
He said placing the international gateway in private hands might spell problems for the country.
Kalomo UPND member of parliament Request Muntanga said the 40 per cent shareholding for Zambians should be emphasised in the mobile phone industry.
He called for improvements in service delivery by mobile phone operators.
Muntanga said he was disappointed that Cell Z was failing to compete with the two other mobile phone operators.
Those appointed to the board are Alec Malichi, Colonel Crispin Mukumano, John Katepa, Wellington Chellah, Nancy Kalikeka Phiri and Elizabeth Kachamba.