Texas Man Gets 5 Years in Prison for Role in PayPal Fraud Scheme

The Department of Justice has reported that 37-year-old Marcos Ponce of Austin, Texas, was sentenced to five years in prison for a scheme to buy tens of thousands of compromised PayPal accounts, a press release said.

After the prison term, he’ll face three years of supervised release.

He reportedly used the stolen account credentials, which he bought from an illegal online market, and stole money from the actual owners.

Ponce was ordered to pay $1.4 million in restitution.

Ponce pled guilty to conspiracy to commit wire fraud in October 2021. He started the scheme in November 2015 and it lasted until around November 2018, working with co-conspirators to establish buyer accounts on one marketplace.

The marketplace was reportedly a market for stolen payment account credentials and various personal information.

“The Justice Department remains firmly committed to protecting the American people from fraudsters like this defendant,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “May today’s sentencing send a clear message to would-be thieves: There are real-world consequences for online crimes.”

Financial crime has not gone away during the pandemic, and digital fraud has only gotten bolder as criminals took advantage of the pandemic’s chaos.

See also: Federal Jury Convicts Man for Defrauding American Express of $4.7M

Recently, a California man, Jasminder Singh, 45, was convicted as well for defrauding American Express for more than $4.7 million, as well as money laundering.

Singh used four businesses he created and controlled, along with 10 American Express credit cards, to buy thousands of Apple iPhones to sell internationally, which netted him millions.

Singh misrepresented the ability to repay more than $4.7 million from buying the phones.

He put in fake payments to get more credit, and with the proceeds of the scheme, he paid for personal expenses and bought luxury items.