Fraud Case 1

It was unloading 125000 in cash to their office two

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Unformatted text preview: ce that in Febmary, a Brink's armored tmck started making deliveries to Advanced Express Systems. It was unloading $125,000 in cash to their office two or three times each week. !tdidn't take long for Cory to accumulate more than $2.9 million in cash. David established that Cory's online pharmacy operation had generated more than $18 million in prescription dmg sales. The number would soon round out at $28 million. During this same time frame, between late Febmaf)' and April, we discovered that Cory and Sean Pitts, a manager at Advanced Express Systems, were traveling on a chartered jet to Montreal, Canada, each week. Cory enjoyed the private jet so much that he made a $385,000 deposit to buy a $1.16 Million British Aerospace Aircraft. He brought cash, luxury vehicles, and equipment to Montreal in preparation to set up a new call center. I ran a Coogle search on Sean and found that he had been charged with spamming online college diplomas-caught selling a master's degree to an investigator's cat. When I ran a Whois on Sean's diploma sales domain name, I recognized one of Cory's aliases as the registrant. While we continued our interviews, Rob diligently arranged his undercover buys from several of Cory's Web sites and his call center. Each time he placed an order, he self-prescribed the quantity, dosage, and type of 6 Computer Fraud Casebook medication. All of his undercover buys were approved by Dr. Martel without any consultation and delivered by FedEx. He discovered that when he submitted false or incomplete information, even using a female name, his orders were filled. He also received up to five calls a day from telemarketers asking the same question: "Are you ready for a refill?" With the help of the Drug Enforcement Agency (DEA), we identified several U.S. pharmacies providing prescription drugs to Cory's customers. The DEA received grievances from doctors and pharmacists recruited to appro\/e prescriptions and supply painkillers and controlled substances. Addicts complained that they had tried to stop abusing drugs but continued to succumb to the pressure of relentless telemarkelers. After Rob made a few undercover purchases, we learned that Cory was planning to move his Minnesota call center. A source informed us that he was transferring his luxury vehicles to different storage facilities. I rechecked his Web sites on Netcraft and found that he had also moved his selVers to different ISPs. Cory was one step ahead of us, trying to hide his assets and destroy evidence. At the time, we had no idea what prompted his evasive measures. Only five months into the investigation, Sarah decided that we had to shut down Cory's operation in the interest of public safety. A newspaper article linked a Minnesota man's suicide with his addiction to painkiller prescription dlUgs bought from several online phannacies, including Cory's. Shortly thereafter, our FBI office received a phone call from one of the employees indicating that Cory knew we were planning a raid. Acting quickly, David obtained search and seizure warrants and...
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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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