DataBreaches.Net

Menu
  • About
  • Breach Notification Laws
  • Privacy Policy
  • Transparency Report
Menu

Four Army National Guardsmen Indicted in Two Fraud Schemes

Posted on May 23, 2016 by Dissent

Greenbelt, Maryland – Three guardsmen from the District of Columbia Army National Guard were indicted on charges arising from a scheme to use Bitcoin to buy stolen credit and debit card numbers from foreign websites, re-encode cards issued in their names with those stolen numbers, and then fraudulently purchase items at Army and Air Force Exchange Service (AAFES) stores on military bases and elsewhere for use and resale (Shelton Stewart Indictment):

Derrick K. Shelton, II, age 28, of Washington, D.C.,

James C. Stewart, III, (J. Stewart) age 25, of District Heights, Maryland; and

Quentin T. Stewart, age 28, of Parkville, Maryland.

A fourth national guardsman, Vincent Anthony Grant, age 27, of Laurel, Maryland was also indicted in a separate case involving a similar fraud scheme (Grant Indictment).  The indictments were returned on May 9, 2016 and unsealed last Friday, May 20, 2016 following the arrests of the defendants.

Shelton, J. Stewart and Grant were specialists, and Q. Stewart was a former sergeant, all in the District of Columbia Army National Guard.

The Shelton Stewart Indictment alleges that from July 2014 to May 2015, Shelton, J. Stewart and Q. Stewart, along with co-conspirator Jamal Moody and others, used Bitcoin to purchase stolen credit and debit card numbers of individuals and businesses from foreign internet websites.  They selected and purchased stolen credit and debit card numbers of individuals and businesses holding federal credit union accounts, and those with billing addresses in or near Maryland.  They bought magnetic strip card-encoding devices and software to re-encode credit, debit and other cards with the stolen credit and debit card numbers.

According to the Shelton Stewart Indictment, the defendants used the cards they fraudulently re-encoded to buy merchandise, including gift cards, electronic items, and luxury goods, from AAFES stores on U.S. military bases, and other locations in Maryland and elsewhere.  They used the merchandise themselves or resold the merchandise.

The Grant Indictment alleges that from July 2014 to April 2015, Grant, along with co-conspirator Moody and others, engaged in a scheme similar to the one described above.

Shelton, J. Stewart and Q. Stewart face a maximum sentence of 20 years in prison for conspiring to commit wire fraud, and wire fraud.  Grant faces a maximum sentence of seven and half in prison for conspiring to commit access device fraud.  All four defendants also face a mandatory minimum of two years in prison for aggravated identity theft, consecutive to any other sentence imposed.  The defendants had their initial appearances last week and were released under pretrial supervision, except for Quentin Stewart who is scheduled to have a detention hearing tomorrow, May 24, 2016, at noon before U.S. Magistrate Judge Charles B. Day in U.S. District Court in Greenbelt.

An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

In a separate proceeding, Jamal Alexander Moody, age 28, of Oxon Hill, Maryland, and Waynesboro, Pennsylvania, who was also a specialist in the District of Columbia Army National Guard, pleaded guilty to conspiring to commit access device fraud and aggravated identity theft.  Moody admitted that from July 2014 to April 2015, he purchased a magnetic-strip card-encoding device which he used to re-encode credit and debit cards issued in his name with more than 100 stolen credit and debit card numbers of other individuals that he purchased through Bitcoin transactions.  Moody used the fraudulently re-encoded cards to purchase – often from AAFES stores – gift cards or electronic and luxury goods for resale.  Moody is awaiting sentencing.

 

SOURCE: U.S. Attorney’s Office, Maryland


Related:

  • National Health Care Fraud Takedown Results in 324 Defendants Charged in Connection with Over $14.6 Billion in Alleged Fraud
  • Major trial underway for data leak that left 72,000 victims in France
  • WMATA Train Operators Arrested in Health Care Fraud Scheme
  • Nigerian National Sentenced To More Than Five Years For Hacking, Fraud, And Identity Theft Scheme
  • Two Men Sentenced to Prison for Aggravated Identity Theft and Computer Hacking Crimes
  • Administrator Of Online Criminal Marketplace Extradited From Kosovo To The United States
Category: ID Theft

Post navigation

← Former Excellon employee’s sentencing delayed in hacking case
Technical report on RUAG breach: malware was from Turla family →

Now more than ever

"Stand with Ukraine:" above raised hands. The illustration is in blue and yellow, the colors of Ukraine's flag.

Search

Browse by Categories

Recent Posts

  • Hackers post stolen St. Paul data online as efforts to reset city employee passwords surge forward
  • Justice Department Announces Coordinated Disruption Actions Against BlackSuit (Royal) Ransomware Operations
  • NL: Hackers breach cancer screening data of almost 500,000 women
  • Violent Crypto Crimes Surge in 2025 Amid Massive Data Leaks
  • Why Ransomware Attacks Are Decreasing in 2025
  • KR: Yes24, the largest Internet bookstore in Korea, suffered its second ransomware attack in two months
  • Korea wins world’s top hacking contest for 4th consecutive year
  • 7-Zip Vulnerability Lets Hackers Write Files and Run Malicious Code
  • Connex Credit Union notifies 172,000 members of hacking incident
  • Federal judiciary says it is boosting security after cyberattack; researcher finds new leaks (CORRECTED)

No, You Can’t Buy a Post or an Interview

This site does not accept sponsored posts or link-back arrangements. Inquiries about either are ignored.

And despite what some trolls may try to claim: DataBreaches has never accepted even one dime to interview or report on anyone. Nor will DataBreaches ever pay anyone for data or to interview them.

Want to Get Our RSS Feed?

Grab it here:

https://databreaches.net/feed/

RSS Recent Posts on PogoWasRight.org

  • Navigating Privacy Gaps and New Legal Requirements for Companies Processing Genetic Data
  • Germany’s top court holds that police can only use spyware to investigate serious crimes
  • Flightradar24 receives reprimand for violating aircraft data privacy rights
  • Nebraska Attorney General Sues GM and OnStar Over Alleged Privacy Violations
  • Federal Court Allows Privacy Related Claims to Proceed in a Proposed Class Action Lawsuit Against Motorola
  • Italian Garante Adopts Statement on Health Data and AI
  • Trump administration is launching a new private health tracking system with Big Tech’s help

Have a News Tip?

Email: Tips[at]DataBreaches.net

Signal: +1 516-776-7756

Contact Me

Email: info[at]databreaches.net

Mastodon: Infosec.Exchange/@PogoWasRight

Signal: +1 516-776-7756

DMCA Concern: dmca[at]databreaches.net
© 2009 – 2025 DataBreaches.net and DataBreaches LLC. All rights reserved.