Store owner gets away with credit card fraud for 6 years

["Richard M. Smith" <rms () computerbytesman com>]

http://www.boston.com/news/local/breaking_news/2007/12/former_hardware.html

By Globe Staff

The former owner of a South Boston hardware store has been indicted on 46
charges for allegedly using the store to gather customer credit card numbers
and make fraudulent charges.

And there's more trouble ahead for Erik Joseph, 51, the Suffolk district
attorney's office said today. 

The prosecutors said that the grand jury that indicted Joseph yesterday only
had time to consider his American Express transactions. His transactions on
Visa, MasterCard, and debit cards will be considered by another grand jury.

"The scope of these offenses is monumental," Suffolk District Attorney
Daniel F. Conley said in a statement.

Joseph allegedly scammed customers at Seaport Hardware on Congress Street,
funneling the money to fake businesses and then from there to dozens of
accounts at various Boston banks.

Joseph's attorney, George McMahon of Quincy, said he hadn't seen the
indictment so he had no comment.

But he said Joseph "is going to fight this. He's pleaded not guilty and
that's the way it's going to be."

In the current indictment, Joseph faces 23 counts of larceny over $250 and
23 counts of fraudulent use of a credit card. The total losses alleged:
$290,894.

The indictments come after Joseph's Nov. 27 arrest on a single count of
larceny stemming from the scam. The case will now move from District Court
to Superior Court.

Evidence suggests that Joseph began the scam in 2001 and continued it for
the next six years, prosecutors said.

Joseph is free on $75,000 bail, said district attorney's spokesman Jake
Wark. 

 

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