fraud

Arlington Resident Pleads Guilty to $20 Million Fraud

By ARLnow.com

Arlington resident Todd Hitt, the founder of Falls Church-based Kiddar Capital, has pleaded guilty to a massive, Ponzi-like fraud scheme.

Federal prosecutors say Hitt, “solicited approximately $30 million from investors for a variety of real estate and venture capital investments,” but used much of the money “for personal spending to support an extravagant lifestyle and new investor’s funds used to pay off old investors.”

“Hitt’s fraudulent conduct resulted in investor losses of approximately $20 million,” said the U.S. Attorney’s Office for the Eastern District of Virginia.

Before his October arrest by the FBI, Hitt was developing a new company headquarters in Falls Church. A member of a prominent local commercial real estate family, Hitt made headlines as a young housing developer in the 1990s for clashing with Arlington neighbors while building what residents dubbed “McMansions.”

More on the guilty plea, and Hitt’s future sentencing, from the U.S. Attorney’s Office:

An Arlington man pleaded guilty today to orchestrating eight fraud schemes that resulted in total losses of approximately $20 million.

According to court documents, Todd Elliott Hitt, 54, solicited approximately $30 million from investors for a variety of real estate and venture capital investments in the Washington, D.C. area from 2014 through August 2018. The investments included Hitt’s solicitation of approximately $17 million from investors in order to purchase a five-story office building adjacent to a planned future stop on the Silver Line in Herndon. Hitt made false statements and material omissions to investors by failing to disclose that a significant portion of the monies raised were commingled with other unrelated investment projects, used for personal spending to support an extravagant lifestyle and new investor’s funds used to pay off old investors in a Ponzi-like scheme. Hitt’s fraudulent conduct resulted in investor losses of approximately $20 million.

Hitt pleaded guilty to a charge of securities fraud in and faces a maximum penalty of 20 years in prison and a fine of $5 million or twice the gross gain or loss, whichever is greater. He is scheduled to be sentenced on June 21. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Matthew J. DeSarno, Special Agent in Charge, Criminal Division, FBI Washington Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea. Assistant U.S. Attorney Mark D. Lytle is prosecuting the case.

Photo via YouTube

Card Skimmer Found in Clarendon ATM

By Chris Teale

Arlington County Police said they recovered a “skimmer” device designed to steal credit and debit card information from a Clarendon ATM late last week.

ACPD said officers responded to the 3000 block of Wilson Blvd just after 11 a.m. on Friday, January 12 after hearing reports of the device. Police determined that it was installed at some point between the previous afternoon and that morning.

Police did not specify which ATM the device was installed at. That block is home to a BB&T bank branch and ATM.

The skimmers have recently been discovered inside pumps at local gas stations, while AAA warned of a spate of the devices across the region last year.

In a tweet, ACPD warned ATM users to monitor their bank statements and report any activity that appears to be fraudulent.

More from an ACPD crime report:

SUSPICIOUS CIRCUMSTANCES (Significant), 2018-01120112, 3000 block of Wilson Boulevard. At approximately 11:11 a.m. on January 12, police responded to the area for the report of a skimming device located inside an ATM. Upon arrival, it was determined that between 4:30 p.m. on January 11 and 10:30 a.m. on January 12, an unknown suspect placed the device inside the machine. There is no suspect description. The investigation is ongoing.

Photo via Google Maps.

Caffe Aficionado Credit Card Fraud Suspect Pleads Guilty

By ARLnow.com
1/5

A co-owner of the former Caffe Aficionado in Rosslyn has pleaded guilty to charges connected to what prosecutors said was a multi-year credit card fraud scheme.

Clark Donat is scheduled to be sentenced next month after pleading guilty in June to a long list of charges: credit card fraud, conspiracy to commit money laundering, money laundering, racketeering, conspiracy to commit racketeering, identity theft, credit card forgery, credit card theft, conspiracy to commit credit card theft and conspiracy to commit identity theft.

His former business partner in the cafe, Adiam Berhane, is scheduled to face a jury trial starting Jan. 30, 2018.

According to prosecutors, Donat and Berhane started using the cafe’s point-of-sale system to fraudulently charge gift cards — purchased with stolen credit cards — in June of 2013, before the cafe even opened. The stolen credit card information was bought off the “dark web” and used to manufacture fake credit cards, which were then used to buy gift cards and other items, prosecutors say.

In all, according to prosecutors, the cafe recorded about $1 million in revenue between 2013 and the police raid in October 2016, $450,000 of which was attributable to “gift cards almost entirely purchased with stolen credit card information.”

Counterfeit cards were also used to buy goods at various stores, including TJ Maxx and REI, which were then returned and credited to one of the defendant’s legitimate credit cards, prosecutors allege. A few days before the raid, prosecutors say, the pair used a stolen credit card to pay for a $1,200 large group brunch at the Four Seasons Hotel in Georgetown.

Before the alleged fraud was revealed, Caffe Aficionado garnered rave reviews for its hand-crafted coffee and espresso drinks. A local food critic even called it “one of the finest coffee shops in the area.”

“We’re really happy with it,” Berhane said of the positive reviews. “I think it’s all about service. Follow the Golden Rule, it’s not that hard.”

Donat is scheduled to be sentenced on Nov. 17 in Arlington Circuit Court.

Gas Station Targeted By Credit Card Skimmers Again

By ARLnow.com

For at least the second time this year, fraudsters have installed credit card skimmers at a gas station in Cherrydale.

Police say a skimming device was found inside a gas pump on the 4000 block of Old Dominion Drive yesterday afternoon, after customers of the gas station “reported fraudulent activity on their bank statements.”

The Arlington County Police Department is encouraging residents to take precautions when pumping gas, noting that new credit card skimmers are more sophisticated and “are undetectable without opening the pumps.”

More from an ACPD press release:

The Arlington County Police Department is warning the public about skimming devices used to steal banking and personal information.

At approximately 2:50 p.m. on Monday, September 18, police were dispatched to a gas station in the 4000 block of Old Dominion Drive for the report of a credit card skimming device located inside a gas pump. Citizens having used this location have reported fraudulent activity on their bank statements. Police are encouraging anyone who has used this gas station to review their bank statements for any fraudulent activity. If fraudulent activity is located, report to police by calling the Emergency Communication Center at 703-558-2222 or file an online police report.

Citizens can take the following crime prevention steps to avoid skimmers at gas stations:

  • Skimming devices have become more sophisticated. In most cases, the skimmers are being placed inside the machine and are undetectable without opening the pumps.
  • Pay inside at the gas station, rather than at the pump.
  • Always pay using a credit card instead of a debit card. Credit cards have better fraud protection, and the money is not deducted immediately from an account.
  • If using a debit card at the pump, choose to run it as a credit card instead of putting a PIN number in. That way, the PIN number is safe.
  • Consider purchasing a refillable prepaid card to purchase gas at the pumps.
  • If you have not already switched to a chip reader on your credit card, do so.
  • Regularly check your bank statements and if you notice fraudulent activity, notify the bank so they can begin an investigation.

Criminals will use a variety of different scams and the Arlington County Police Department wants the public to remain alert so you don’t become a victim. Individuals seeking more information about fraud can visit our website or contact the Arlington County Police Department’s Financial Crimes Unit at [email protected] .

Photo via Google Maps

AAA Warns Drivers of Credit Card Skimmers at Gas Stations

By Chris Teale

After a spate of credit card skimming devices being discovered at gas stations across the region this year, including in Arlington, AAA Mid-Atlantic is warning motorists to be extra cautious when paying at the pump.

Several gas stations in Cherrydale as well as a Shell station on S. Four Mile Run Drive appeared to have been hit by the skimmers earlier this year. The skimmers are installed inside pumps and ATMs and copy customers’ card information for fraudulent use by criminals, who use Bluetooth technology to receive the stolen credit card numbers in seconds.

Anyone who suspects a skimmer in their gas pump can check by jiggling the credit card slot to see if it is askew or asymmetrical.

More from John B. Townsend II, AAA Mid-Atlantic’s Manager of Public and Government Affairs:

The caper may crop up, lawmen forewarn, in other counties, cities and communities across the Greater Washington area, as dodgy perpetrators try to stay steps ahead of the reach of the law’s long arm and catch local consumers unawares as they purchase fuel. To safeguard your debit or credit card, and protect your finances, only buy gas at stations that affix security seals to the fuel dispenser. Always remember the motto ‘Let the buyer beware’ (caveat emptor) when making a gas transaction.

This year, skimmers have been discovered in parts of Maryland as well as Alexandria, Bailey’s Crossroads, Centreville, Tysons Corner, Vienna, and in areas around Prince William and Frederick counties. In the last 12 months, AAA said, Fairfax County Police have removed “21 individual skimmers from 15 different locations.”

AAA gave the following advice to those using self-service gas pumps:

  • Park at pumps close to the front door of the gas station if possible. Criminals tend to install the skimmers on an outside pump farthest from where the clerks can see them.
  • Check for Bluetooth skimmers embedded inside pumps at a gas station using your cell phone. Turn on your Bluetooth setting and look for a series of random numbers and letters. It may be a telltale sign a Bluetooth-enabled skimming device is interleaved into the gas kiosk. Do not connect to the Bluetooth device.
  • Make sure the gas pump panel is closed and inspect the card reader at the pump. Look for signs of tampering. If it looks like it’s been opened or its security tape has been broken, inform the cashier and do not use that pump.
  • Pay for your gas inside the store.
  • Use cash instead of your credit card.
  • Monitor your bank statements constantly. Look for overdraft notices. Skimming criminals may wait months before using your information and then go on a sudden spending spree.

Photo via Google Maps

Police, Sheriff’s Office Warn of Another Jury Duty Telephone Scam

By Chris Teale

The Arlington County Police Department and Sheriff’s Office have issued a warning about a telephone scam targeting county residents.

Police said multiple residents reported receiving phone calls from someone either claiming to be a Sheriff’s Deputy or with another local law enforcement agency, accusing them of failing to appear for jury duty.

The scammer then said a warrant for their arrest was to be issued unless a fine is paid over the phone.

Earlier this month, a reader reported receiving a call of this nature from a man claiming to be a Sgt. Jimmy Jackson with Arlington police. The reader said the caller did not ask for money right away, but instead stated that they had to schedule an in-person affidavit, and the money paid would arrange that.

Police and the Sheriff’s Office warned of a similar scam earlier this year.

More from an ACPD press release:

If you receive a call of this nature, immediately hang up with the caller and verify the claim by calling the Arlington County Sheriff’s Office at 703.228.4460. Never use a phone number provided to you from the caller to verify their credibility.  Also, never provide personal information such as bank account numbers to anyone over the phone.

After making a verification call, if you find that you were a target or victim of a scam, please file an online police report or call the non-emergency police line at 703.558.2222.

Subjects will use a variety of different phone scams and the Arlington County Police Department wants the public to be aware of the recent string of scams and past cases so you don’t become a victim. In addition to the recent jury duty scam, the Police Department has received fraud reports in the past regarding utility companies threatening to shut of services if not provided immediate payment; IRS collecting fees for unpaid taxes; and family members allegedly being held hostage or having suffered injury requiring payment. If you receive a call of this nature, please hang up immediately and report this information to the non-emergency line. Individuals seeking additional information about fraud can contact the Arlington County Police Department’s Financial Crimes Unit at [email protected] or visit the police website.

Jury Duty Fraud Scam Targets Arlington Residents

By Brooke Giles

Another scammer who claims to be serving an arrest warrant for a supposed jury duty mix-up is targeting Arlington residents.

A reader said a man claiming to be a Sgt. Jimmy Jackson with the Arlington County Police Department called her saying there was a warrant out for her arrest due to the mix-up. Police reported a similar scam earlier this year.

Unlike previous scams, the reader said the caller did not ask for money right away, but instead stated that they had to schedule an in-person affidavit. He said the money paid for reserving a time block would be refunded at a future court appearance.

Although the scammer name drops Arlington General District Court clerk Steven Robert Spurr and Chief Judge William T. Newman from Arlington Circuit Court, police said the badge number he cites — No. 3319 — is fake. County courts also always send any information for jury duty by mail or email.

Department spokeswoman Ashley Savage said no badge number begins with the digits 33, and that police will never ask for money over the phone. Savage also encouraged any victims of fraud to report it at the county’s online reporting system.

Police Investigating Credit Card Skimmers at Cherrydale Gas Stations

By ARLnow.com

It’s an ongoing problem: thieves using “skimmer” devices to steal credit and debit card information from unsuspecting customers of local businesses.

Arlington’s Cherrydale neighborhood appears to be the latest target of the skimmer scammers.

Reports a resident:

Maywood listserv lighting up with reports of multiple people getting their credit cards skimmed recently. Most people point to common thread of Liberty Gas station on Lee Highway (and a few other likely places in the area) as common thread. But that is not 100% clear.

In most cases, someone buys gas here. Later someone tries to purchase gas in California. Per Cherrydale listserv earlier, it looks like Arlington Police already found a “skimmer” machine earlier at Exxon across the street, but these are new reports from another potential location.

Arlington County Police Department spokeswoman Ashley Savage confirmed at least a portion of the neighborhood scuttlebutt.

Here’s what she said via email to ARLnow.com:

Our Financial Crimes Unit received reports of possible credit card skimming at the Liberty Gas station. They responded to the area and during their investigation did not identify a point of compromise at this location. On March 9 at approximately 1:57 p.m., police responded to the Exxon gas station in the 4000 block of Old Dominion Drive for the report of a recovered credit card skimmer. That investigation is ongoing.

These type of cases are typically reported to police as credit card fraud and since we use credit cards for almost all purchases (online, in person, groceries, gas, etc.) the challenge is identifying the point of compromise. Turnaround time from point of compromise to first fraudulent use varies depending on how the suspects intend to use the stolen data. Police work closely with banking institutes who notify us when there is a trend with customers cards being compromised and they identify the location all the cards have in common.

There are some things citizens can do to protect themselves:

  • You will not know if a gas pump has a skimmers. In most cases, the skimmers are being placed inside the machine.
  • Pay inside at the gas station rather than at the pump.
  • Always pay using credit rather than debit – it’s easier to dispute the charges and isn’t linked directly to your bank account.
  • If you haven’t switched to a chip reader on your credit card, do so.
  • Regularly check your bank statements and if you notice fraudulent activity, notify the bank so they can begin an investigation.
  • If you find you were the victim of fraud, file a police report.

Photo via Google Maps

Morning Notes

By ARLnow.com

Police Warn of Fraud Scheme — The Arlington County Police Department is warning that home repair and tree service fraud schemes become more prevalent in the spring. Police say to be wary of would-be service providers who approach or knock on your door unannounced, pressure you to make an immediate decision, claim to have leftover materials or to be working in the area, and only accept cash payment. [Arlington County]

Arlington Restaurant Makes Sietsema’s Top 10 — Ambar in Clarendon has been included in restaurant critic Tom Sietsema’s list of the top 10 new restaurants in Washington. It is the only Virginia restaurant on the list. [Washington Post]

Beyer Supports Budget Bill — Rep. Don Beyer (D-Va.) says that while it’s not perfect, he supports the compromise omnibus funding bill that passed the House of Representatives on Wednesday. Beyer says the bill contained key environmental protections and funding for scientific research. [Rep. Don Beyer]

No Endorsement from Garvey — County Board member Libby Garvey says she will vote in the upcoming Democratic caucus, but so far she is not endorsing any candidate for County Board. [InsideNova]

ACDC Candidate Forum — The Arlington County Democratic Committee held its candidate forum/debate last night, with all four candidates for County Board weighing in on topics from affordable housing to WMATA and transit to diversity in county government. [Blue Virginia]

Trustify’s Swanky Digs — Arlington-based startup Trustify’s new 8,000 square foot office in Crystal City has “a view that arguably is one of the dreamiest” among local startups. The design of the office was “‘film noir’-inspired.” [DC Inno]

Arlington Woman Charged With Felony Welfare Fraud

By ARLnow.com

Arlington County police logoAn Arlington woman has been charged with fraudulently obtaining more than $100,000 in public assistance.

Police say the fraud happened between 2010 and 2016.

The suspect, Helen Agbapuruonwu, was charged with felony welfare fraud and document forgery. Her husband is listed on LinkedIn and elsewhere as an associate at the D.C. office of a large international law firm.

From an Arlington County Police Department crime report:

FELONY WELFARE FRAUD, 2016-10040029, 2100 block of Washington Boulevard. Between April 1, 2010 and August 1, 2016 the subject allegedly fraudulently obtained public assistance in excess of $100,000 under false pretenses. Helen Agbapuruonwu, 38, of Arlington VA was arrested and charged with felony welfare fraud and document forgery.

Con Men Sentenced for Ripping Off Elderly Arlington Residents

By ARLnow.com

(Updated at 4:15 p.m. on 12/23/21) Two Northern Virginia men have been sentenced after being convicted of ripping off elderly homeowners in Arlington’s Yorktown neighborhood.

John [Redacted] and Mark [Redacted] were sentenced to serve at least two years in prison and pay $62,100 in restitution to the victims, in addition to several years of probation. Prosecutors say the pair conned the elderly residents of a home on 27th Street N. into believing that they “were in need of serious home repair.”

More from an Arlington County Police Department press release, below.

Two men were sentenced on Friday, March 3, 2017 in the Arlington County Circuit Court for their role in a fraud scheme targeting Arlington County residents. John Patrick [Redacted], 32, of Culpepper, VA was sentenced to seven years in prison, with all but two years suspended, on the charges of false pretenses and conspiracy. He was ordered to pay restitution to the victims in the amount of $62,100 and ordered to five years of probation upon release from incarceration. Mark [Redacted], 31, of Boston, VA was sentenced to six years in prison, with all but two years and five months suspended, on three charges of false pretenses. He was ordered to pay restitution to the victims in the amount of $62,100 and ordered to three years of probation upon release from incarceration.

On September 10, 2016, [Redacted] and [Redacted] approached the victim’s residence in the 4800 block of N. 27th Street and fraudulently claimed to be contractors working in the area. They advised the elderly residents that they were in need of serious home repair and that failure to comply could result in the home catching fire. Throughout the month of September, [Redacted] and [Redacted] misrepresented the need for work and provided false information to the victims that work had been performed. Through a series of repeated home repair scams, the victims were defrauded of $62,100 in cash.

Arlington County Deputy Chief Daniel J. Murray, Commander of the Criminal Investigations Division said, “The individuals who perpetrate these scams target and victimize our most vulnerable populations. While there was a substantial loss of money in this investigation, the greater loss was the victim’s sense of security in their own home. This prosecution serves as another opportunity to warn residents to avoid becoming a victim of fraud.  Residents should beware of any smooth-talking salesman who comes to your home unannounced.”

Detective K. White was the lead detective.

View More Stories