Prison Inmate Accused of Orchestrating $11 Million Fraud Using Cell Cellphone

An anonymous reader quotes a report from The Register: On June 8, 2020, an individual claiming to be billionaire film producer and philanthropist Sidney Kimmel contacted brokerage Charles Schwab by phone and stated that he had uploaded a wire disbursement form using the service's secure email service. The only problem was the call apparently came from prison. Still, the caller made reference to a transfer verification inquiry earlier that day by his wife -- a role said to have been played by a female co-conspirator. The individual allegedly posing as Kimmel had contacted a Schwab customer service representative three days earlier -- on June 5, 2020 -- about opening a checking account, and was told that a form of identification and a utility bill would be required. On June 6, a co-conspirator is alleged to have provided a picture of Kimmel's driver's license and a Los Angeles Water and Power utility bill. According to court documents [PDF] filed by the US Attorney's Office in the Northern District of Georgia, the uploaded documents consisted of a request for funds to be wired to an external bank and a forged letter of authorization -- both of which appeared to be signed by Kimmel. On June 9, satisfied that Kimmel had been adequately authenticated, the brokerage sent $11 million from Kimmel's Schwab account to a Zions Bank account for Money Metal Exchange, LLC, an Eagle, Idaho-based seller of gold coins and other precious metals. The real Kimmel had no knowledge of the transaction, which resulted in the purchase of 6,106 American Eagle gold coins. The individual who orchestrated the fraudulent purchase of the coins is alleged to have hired a private security firm on June 13, 2020 to transport the coins from Boise, Idaho to Atlanta, Georgia on a chartered plane. An associate of the fraudster allegedly took possession of the coins three days later. All the while the alleged mastermind, Arthur Lee Cofield Jr, was incarcerated in a maximum security prison in Butts County, Georgia, according to the government. Cofield is serving a 14-year sentence for armed robbery and is also under indictment in Fulton County, Georgia for attempted murder. The day after the coins were purchased, prison staff are said to have searched Cofield's cell and recovered a blue Samsung cellphone hidden under his arm. The prison forensic unit apparently determined that Cofield had been using an account on free voice and messaging service TextNow and matched the phone number with calls made to Money Metals Exchange. On December 8, 2020, a federal grand jury indicted Cofield and two co-conspirators for conspiracy to commit bank fraud and money laundering. Cofield's attorney, Steven Sadow, subsequently sought to suppress the cellphone evidence on Fourth Amendment grounds, arguing that the warrantless search of the device by prison officials was unrelated to the legitimate function of prison security and maintenance. The government said otherwise, insisting that Cofield does not have standing to contest the search, having no "legitimate expectation of privacy in the contents of a contraband cell phone." The judge overseeing the case sided with the government [PDF] and certified the case to proceed to trial.

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