Feds seize 14 7-Eleven stores in ID theft case

[Erica Absetz <erica () riskbasedsecurity com>]

http://money.cnn.com/2013/06/17/news/companies/7-eleven-identity-theft/

Federal authorizes seized 14 7-Eleven stores in New York and Virginia,
and indicted nine owners and managers, charging them with stealing
identities and exploiting more than 50 illegal immigrants.

Farrukh and Bushra Baig, a married couple who owned or managed a dozen
of the convenience stores, along with seven other owner-managers, were
charged with identity theft, conspiracy to commit wire fraud and
concealing and harboring illegal immigrants, Loretta Lynch, U.S.
Attorney for the Eastern District of New York, said Monday .

"From their 7-Eleven stores, the defendants dispersed wire fraud and
identity theft, along with Slurpees and hot dogs," Lynch said at a
Brooklyn news conference.

She said the 7-Eleven defendants allegedly forced the immigrants to
work 100 hours a week and pocketed the majority of their pay, while
also forcing them to live in and pay rent in boarding houses that the
defendants owned. This "plantation system" allegedly went on for more
than 13 years, she said.

Ten of the stores are located on New York's Long Island and four are
in Virginia. Lynch said the stores are now operating under the direct
management of 7-Eleven, after the authorities moved to have the
franchises forfeited. The Feds also seized five houses on Long Island
owned by defendants.

James Hayes Jr., special agent in charge of the U.S. Immigration and
Customs Enforcement's Homeland Securities Investigations, said federal
agents are investigating an additional 40 7-Eleven stores.

Related: Bernie Madoff, king of the thieves

In a statement, a 7-Eleven representative said "7-Eleven is aware of
today's activity against local franchise owners and has been
cooperating with federal authorities during their investigation."
Attorneys for the defendants were not immediately available for
comment.

The defendants are accused of using stolen identities from 20 victims
to mask the true identities of their illegal workers to 7-Eleven Corp.
The stolen identities include an eight-year-old child and three dead
people. Lynch said that a single identity would sometimes be used to
fraudulently represent more than one person.

Most of the defendants, including the Baigs, are naturalized citizens,
authorities said, and all of them live on Long Island. The defendants
are from Pakistan or the Philippines, and allegedly exploited people
from their own home countries, said the authorities. Victims alerted
the authorities to the alleged crime, despite their own vulnerable
situation in the U.S.

"Some workers, despite their illegal status, came forward to
authorities," said Lynch, adding that the future of the cooperating
victims is unclear. "Every case is going to be looked at
individually."

Authorities have arrested all but one of the defendants. Lynch said
Azhar Zia, 49, of Great River, N.Y., is a fugitive from justice.
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