A group of five individuals, including Cuban nationals, have been sentenced to prison for their involvement in an elaborate credit card fraud and money laundering operation that defrauded over $3.5 million in South Florida, authorities announced on Tuesday.
The U.S. Attorney's Office for the Southern District of Florida revealed the sentences for the five members of the criminal organization, which orchestrated more than $3.5 million in fraudulent charges by exploiting point-of-sale systems, stolen credit cards, and shell companies.
Willan Pupo, a 38-year-old Cuban, received an 11-year federal prison sentence; Joel Castillo, aged 39, was sentenced to four years and ten months; William Castillo (42) was given four years and seven months; Miriam Pupo (Cuban, 36) received three years and one month, and Jessica Forpomes (40) was sentenced to three years.
Each of the defendants had previously pleaded guilty to money laundering charges.
The Fraudulent Operation's Extensive Reach
According to court records, the defendants orchestrated a large-scale credit card fraud and money laundering scheme from at least February 2023 to June 2024. Their methods involved using legitimate businesses and shell companies to acquire point-of-sale (POS) devices from merchant processors, enabling them to conduct credit and debit card transactions and transfer funds to accounts they controlled.
The prosecution outlined three primary methods the defendants used to conduct fraudulent transactions. Initially, they employed credit cards from accomplices to create fake purchases of goods and services that were never delivered. These accomplices would then dispute the charges to obtain refunds.
Secondly, the group bought stolen credit card numbers from the dark web and through encrypted messaging apps like Telegram, using them to process unauthorized transactions.
The third method involved using credit cards stolen from the mail to carry out additional fraudulent purchases.
Manipulating the System for Financial Gain
Once the fraudulent transactions were processed, the defendants quickly transferred or withdrew the funds from the associated bank accounts to avoid detection by merchant processors. After victims reported the fraudulent charges, credit card issuers reversed the transactions, leaving the losses to be borne by merchant processors and financial institutions.
The scheme went even further, with William Castillo, Willan Pupo, and Joel Castillo accessing a database containing extensive personal identification information, such as names, aliases, birth dates, social security numbers, addresses, and other confidential data. This information was exploited to identify and victimize individuals, allowing the activation of stolen credit cards and expediting their fraudulent activities, the prosecution explained.
Authorities also noted that, beyond the credit card fraud scheme, Willan Pupo and Joel Castillo admitted to using shell companies to fraudulently obtain economic injury disaster loans, from which they profited over $650,000.
The announcement also disclosed that, in an effort to make restitution, Joel and William Castillo have paid over $800,000 to date.
Jason A. Reding Quiñones, the federal prosecutor for the Southern District of Florida, stated that the network members "exploited legitimate businesses, abused financial systems, and shifted the losses onto banks and processors," and emphasized that large-scale frauds like this undermine trust in financial markets.
Reding warned that "those who build criminal enterprises on deceit and data theft will face significant federal prison terms."
The first arrests in this case occurred in July 2024, when the U.S. Secret Service conducted a raid in Pembroke Pines, Broward County, apprehending Willan Pupo and Joel Castillo on charges of conspiracy to commit access device fraud, wire fraud, and money laundering, as reported by Telemundo 51.
Key Insights into the Credit Card Fraud and Money Laundering Case
What was the total amount defrauded by the criminal network?
The criminal network defrauded over $3.5 million through a sophisticated scheme involving credit card fraud and money laundering.
How did the defendants use point-of-sale devices in their scheme?
The defendants used point-of-sale devices obtained through legitimate businesses and shell companies to process fraudulent credit and debit card transactions.
What additional fraudulent activities did Willan Pupo and Joel Castillo admit to?
Willan Pupo and Joel Castillo admitted to using shell companies to fraudulently obtain economic injury disaster loans, profiting over $650,000.