Fraud Case 1

I immediately opened an investigation on corys credit

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Unformatted text preview: nd COD payments were accepted and Fed Ex deli\'ered the medication. I immediately opened an investigation on Cory's credit card fraud and spamming acti\tity. A few weeks intO the case, Special Agent David Flynn of the IRS Criminal Investigation Division called regarding allegations that Col)' was potentially im'oh'ed with a money laundering scheme. We began working together. David was a meticulous investigatOr, one who accounted for evcry single dollar. He and I idcntified several former and currCIll employces who were fed up with COI)"S continual sexual harassment and appalling conduct at the office. They claimed he belittled them and would fire anyone without reason. He was even said to have used a raser gun on them to test their threshold for pain, laughing until they succumbed. We learned from his employees that Col)' was making millions of dollars through his online phammcy business. The top sellers were painkillers, usually hydrocodone-based drugs such as Vicodin and Norco. Customers were provided with an online questionnaire to describe medical symptoms, self·prescribe their own drugs, and place an order. For painkillers, clientele rated their level of discomfort on a scale of 1 to 10. If their threshold did not link with their desired dosage, telemarketers coached customers to increase their pain level. It was confimled that thc call center used the Website for Direct Discount Drugs to place orders. A Whois check on re\'ealed that it was registered in Seattle, WashingtOn, to someone using the name RegistcrFly. The registrant's real name was concealed by a security feature called Whois Privacy Protect, but after obtaining a subpoena, we reviewed the records, which pro\'ed that Cory used an alias and Visa business credit card to buy the domain name. 4 Computer Fraud Casebook The former call center employees told us that all of their customer orders were electronically sent to one doctor, Paul Martel in NewJersey, for approval. TeJemarketers were ordered not to call him for any reason. Dr. Martel had no face-to-face, telephone, or any other contact with the clients. And not one employee could recall the doctor ever rejecting a prescription. Cory required his employees to work around the clock, demanding that they "Sell, sell, sell!" Those with the highest perfonnance were placed on an elite team called the "Platinum Group." Staff contacted repeat customers, usually drug abusers, and pressured them into refilling their prescriptions. Advanced Express Systems was essentially an online drug dealer preying on addicts. Da,~d and I interviewed more employees and learned that Cory had several other Web sites with servers located in different locations in the United States and the Bahamas. I looked at the SwifteRX Web site again and noticed a 1-800 number for placing orders and customer service. Coogle revealed several other online phannacies with the same number. After perfonning a Whois search on each Web site, J discovered that the domain names were...
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This note was uploaded on 04/04/2011 for the course ACCT 5230 taught by Professor Szendi during the Spring '10 term at Kean.

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