Brazilian Citizens Plead Guilty To Using Counterfeit Credit Cards To Purchase Over $52,000 In Merchandise And To Aggravated Identity Theft

Baltimore, Maryland – Two Brazilian citizens residing in Florida have pleaded guilty to federal wire fraud charges in connection with a scheme to use counterfeit debit and credit cards to purchase merchandise at various retail stores in Maryland and other states.  Lucas Pimenta Diogo Das Gracas, age 23, pleaded guilty today, and his co-conspirator, Diogo Miranda Araujo, age 23, pleaded guilty on December 7, 2018.  Araujo also pleaded guilty to aggravated identity theft for his role in the scheme in Maryland.  Das Gracas also pleaded guilty to possession of counterfeit access devices and aggravated identity theft in connection with a separate case pending in the U.S. District Court for the Southern District of Mississippi. Another co-conspirator, Victor Andrade Carneiro Brito, pleaded guilty to possession and use of counterfeit access devices and aggravated identity theft in the U.S. District Court for the Southern District of Florida on October 5, 2018.

The guilty pleas were announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Sung Yi of the U.S. Secret Service, Baltimore Field Office; Special Agent in Charge Raimund Seifart of the Naval Criminal Investigative Service – Washington Field Office; Colonel Lance Royce of the Naval Support Activity Police Department; and Colonel Woodrow Jones, Chief of the Maryland Transportation Authority Police.

According to Araujo’s plea agreement, in November 2017, while he was on pretrial release for related Illinois state charges, Araujo traveled from Florida to Maryland, Virginia, and North Carolina.  Araujo obtained a large number of cloned payment cards as well as fake Brazilian identification cards that were used in fraudulent retail transactions in Maryland and the surrounding area.  On November 19, Araujo was arrested by a Maryland Transportation Authority Police (“MTAP”) officer who conducted a traffic stop of Araujo’s vehicle and learned that Araujo was driving on a suspended license.  A search of the vehicle resulted in the seizure of approximately 164 counterfeit payment cards, four fake Brazilian identification cards displaying the same photo of Araujo but listing four different names, multiple receipts, and several recently purchased items of merchandise, including two laptop computers, six GPS devices, and sports equipment. Merchandise recovered from the vehicle had an approximate total value of $4,355. Most of the counterfeit payment cards displayed names listed among Araujo’s four fake identification cards and were encoded with compromised foreign credit and debit card accounts.

Also in November 2017, Das Gracas, Brito, and another co-conspirator possessed at least 189 counterfeit payments cards, which they used, along with false identification documents, to rent a vehicle and make fraudulent retail purchases in Maryland and surrounding states.  Das Gracas and Brito were arrested in Maryland on November 29, 2017, after they and another co-conspirator made numerous purchases of computers and other merchandise using the counterfeit payment cards.  Law enforcement stopped the vehicle that Das Gracas was driving.  As Das Gracas got out of the vehicle, law enforcement officers observed numerous credit cards inside an open white box on the center console of the vehicle.  All 166 cards found in the vehicle were scanned and found to be counterfeit.  Most of the cards were encoded with foreign credit and debit card accounts.

Araujo further admitted that from May through July 2017, he traveled from Florida to Minnesota, Ohio, Wisconsin, and Illinois making fraudulent purchases at retailers using counterfeit payment cards.  Specifically, co-conspirators in Florida sent Araujo cloned payment cards, which Araujo would pick up at commercial mail service locations and use at retailers in the area.  On July 29, 2017, after making a number of fraudulent purchases at an Illinois department store, Araujo was arrested.  Illinois law enforcement recovered approximately 197 cloned payment cards and approximately 157 items of merchandise, including cellular phones, small electronics, and other items valued at approximately $48,089.  A search of the laptop computer found in Araujo’s luggage revealed an open document listing approximately 432 credit and debit card account numbers with associated data, and an open American Express webpage. Most of the listed credit and debit card accounts were held by financial institutions located in various foreign countries. 

In connection with the Mississippi case, Das Gracas further admitted that between October 4 and October 14, 2017, Das Gracas and other co-conspirators possessed and installed “shimmer” devices on automated teller machines at financial institutions in Gulfport, Ocean Springs, Biloxi, Long Beach and D’Iberville, Mississippi.  A shimmer device is equipment designed and used to record data surreptitiously from the chip of a credit, debit, or bank card.  On October 18, Das Gracas and other conspirators traveled to ATMs in Hattiesburg, Mississippi, to conduct fraudulent cash withdrawals, using the account numbers and personal identification numbers obtained through the use of the previously installed shimmer devices.  A total of approximately 82 payment cards were compromised and information associated with 35 of those cards was subsequently used, resulting in losses of approximately $19,235, as well as an additional $11,358 in losses to the financial institutions to repair and replace ATM card readers damaged by Das Gracas and co-conspirators when installing shimmer devices.

As part of their plea agreements, the defendants will be required to pay restitution in the full amount of the victims’ losses.

Das Gracas and Araujo each face a maximum sentence of 20 years in prison for wire fraud and a mandatory minimum of two years in prison, consecutive to any other sentence, for aggravated identity theft.  Das Gracas also faces a maximum of 10 years in prison for possession of counterfeit access devices.  U.S. District Judge Richard D. Bennett has scheduled sentencing for Araujo on March 6, 2019, at 3:00 p.m.; and for Das Gracas on March 21, 2019, at 3:00 p.m.  Brito is scheduled to be sentenced on March 8, 2019, in the Southern District of Florida.

United States Attorney Robert K. Hur commended the U.S. Secret Service Baltimore and Chicago Field Offices, the NCIS, Navy Police, Maryland Transportation Authority Police, and the St. Charles, Illinois Police Department for their work in the investigation.  Mr. Hur thanked Assistant U.S. Attorney Matthew J. Maddox, who is prosecuting the case.

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