32 East Bay street gang members arrested in million-dollar fraud scheme

File photo of computer keyboard for cybercrime. Computer being corrupted File photo of computer keyboard for cybercrime. Computer being corrupted Photo: Andrew Brookes / Getty Image Photo: Andrew Brookes / Getty Image Image 1 of / 15 Caption Close 32 East Bay street gang members arrested in million-dollar fraud scheme 1 / 15 Back to Gallery

California Attorney General Xavier Becerra announced on Monday the arrest of 32 alleged East Bay gangsters linked to a million-dollar fraud conspiracy.

The BullyBoys and CoCo Boys street gangs, who both have roots in Antioch, Pittsburg, and Bay Point, allegedly burglarized medical and dental businesses in 13 counties in Northern California.

According to authorities, suspects stole and ran fraudulent returns on credit card terminals, placing the money on debit cards for their own use.

Multiple law enforcement agencies began looking into the burglaries in February 2016, seizing stolen terminals, laptops, and “personal files detailing Social Security numbers or bank information,” Becerra’s office said in a press release.

The 32 individuals were indicted on August 22 on 240 counts including conspiracy to commit grand theft, grand theft, hacking, computer fraud, burglary, and identity theft.

“This investigation remarkably demonstrates the increasing level of sophistication by which criminal gangs operate in California,” Kent A. Shaw, executive director of Western States Information, said in a press release from the attorney general’s office.

Gwendolyn Wu is a San Francisco Chronicle staff writer. Email: gwendolyn.wu@sfchronicle.com Twitter: @gwendolynawu</s>California Attorney General Xavier Becerra announced on Monday the arrest of 32 alleged East Bay gangsters linked to a million-dollar fraud conspiracy.

The BullyBoys and CoCo Boys street gangs, who both have roots in Antioch, Pittsburg, and Bay Point, allegedly burglarized medical and dental businesses in 13 counties in Northern California.

According to authorities, suspects stole and ran fraudulent returns on credit card terminals, placing the money on debit cards for their own use.

Multiple law enforcement agencies began looking into the burglaries in February 2016, seizing stolen terminals, laptops, and “personal files detailing Social Security numbers or bank information,” Becerra’s office said in a press release.

The 32 individuals were indicted on August 22 on 240 counts including conspiracy to commit grand theft, grand theft, hacking, computer fraud, burglary, and identity theft.

“This investigation remarkably demonstrates the increasing level of sophistication by which criminal gangs operate in California,” Kent A. Shaw, executive director of Western States Information, said in a press release from the attorney general’s office.</s>More than 30 East Bay street gang members were indicted Monday for allegedly running a $1 million fraud scheme by stealing and hacking credit card terminals and accounts of dozens of Northern California businesses.Attorney General Xavier Becerra announced the charges against 32 members of the BullyBoy and CoCo Boys street gangs which operate in Antioch, Pittsburg, and Bay Point.The gangs reportedly worked together to steal credit card terminals from businesses and then used those terminals to process fake returns. Rather than having the returns go back to the business or the customer, the gang members would put money on a debit card and keep the card themselves.Investigators say the suspects hit dozens of businesses including many medical and dental offices in 11 Northern California counties over a period of two years. Officials say the locations include businesses in Antioch, Pittsburg, Vacaville, Stockton, Modesto, Hayward, Hercules, Pleasant Hill, Fairfield, Sacramento, Walnut Creek, Rocklin, Concord, Kentfield, Roseville, Vallejo, Pleasanton, Livermore, Auburn, Napa, Dublin, Santa Clara, Brentwood and San Rafael."This investigation remarkably demonstrates the increasing level of sophistication by which criminal gangs operate in California," said Kent A. Shaw, Executive Director of Western States Information network which was involved in the investigation.Investigators say they recovered 40 stolen credit card terminals and dozens of recipes depicting fraudulent returns.The suspects face 63 counts of conspiracy to commit grand theft; 54 counts of hacking, computer access and fraud; 56 counts of grand theft; 59 counts of burglary; and eight counts of identity theft."Street gangs target and intimidate our families and businesses to feed their criminal enterprise," said Attorney General Becerra. "Today's announcement serves as a reminder to all business owners to take all necessary precautions to avoid becoming the target of fraud."</s>SACRAMENTO, Calif. (AP) - More than 30 purported street gang members have been charged with stealing more than $1 million in what authorities said Monday was an unusually sophisticated credit card fraud scheme.

Members and associates of the BullyBoys and the CoCo Boys street gangs based in the suburbs east of San Francisco defrauded hundreds of victims by breaking into dozens of medical and dental offices to steal credit card terminals and patient records, said state Attorney General Xavier Becerra and police chiefs from three cities.

The 32 alleged gang members used the stolen terminals to process credit card returns, downloading them to debit cards, according to the 240-count indictment.

California Attorney General, Xavier Becerra, at podium, and other officials announce indictments of 32 members of purported street gangs on charges of stealing more than $1 million using an unusually sophisticated credit card fraud, at a news conference in Sacramento, Calif., Monday, Sept. 10, 2018. From left are Deputy Attorney General Tawnya Austin, who heads the attorney general's e-crimes unit; Walnut Creek Police Chief Tom Chaplin; Becerra; Sacramento Police Chief Daniel Hahn; and Vacaville Police Chief John Carli. Authorities said Monday that the BullyBoys and the CoCo Boys street gangs defrauded hundreds of victims across Northern California by breaking into dozens of medical and dental offices to steal credit card terminals and patient records. (AP Photo/Don Thompson)

"It is easier today and it is more rewarding today to engage in identity theft and financial fraud than it is to go out there on the street and commit physical, violent crime," Becerra said. "It pays more at lower risk," though he alleged the gangs used the money to fund other illegal activities that are not included in the indictment.

The investigation began in early 2016 when investigators noticed similarities between burglaries scattered across Northern California.

The indictment handed down last month by a special Sacramento County-based statewide grand jury includes counts of conspiracy to commit grand theft; hacking, computer access and fraud; grand theft; burglary; and identity theft.

"It may not be as physically harmful and dangerous as being accosted on the street, but I can guarantee you it hurts just as much" Becerra said.

Nearly 130 law enforcement officers fanned out last week to make 23 arrests, said Walnut Creek Police Chief Tom Chaplin. Another two were arrested over the weekend, while seven remain fugitives, said Deputy Attorney General Tawnya Austin, who heads the attorney general's e-crimes unit.

Investigators recovered about 40 stolen credit card terminals, dozens of fraudulent receipts, laptop computers and files including Social Security numbers or bank information.

Street gangs have become more mobile, picking targets over large regions and taking advantage of opportunities like unsecured or unencrypted files or financial equipment, said Sacramento Police Chief Daniel Hahn.

"We've all seen high tech crime become the new battleground," said Chaplin.</s>SACRAMENTO (CBS SF) — California Attorney General Xavier Becerra announced Monday that 32 individuals associated with two East Bay gangs, known as the BullyBoys and the CoCo Boys, have been arrested.

The two gangs — who are based in the Antioch, Pittsburg, and Bay Point areas — and the arrested individuals played part in operating a $1 million fraud scheme throughout California in which they hacked credit card terminals and merchant accounts of dozens of medical and dental businesses.

They used stolen terminals to process returns, whose values were then placed onto a debit card for the perpetrators to keep instead of going back to the businesses.

The initial investigation began in February 2016 after law enforcement discovered similarities and patterns between credit card terminal and business burglary schemes that tied the BullyBoys and the CoCo Boys to the crimes.

Becerra announced a 240-count indictment against the gang members which includes grand theft, burglary, hacking, computer access and fraud, and identity theft among other charges.

Following the three-year, multi-agency investigation of the fraud scheme, approximately 40 stolen credit card terminals were recovered. Dozens of receipts depicting fraudulent returns were located as well.

Agents seized other stolen items, including laptops and personal files detailing social security numbers and bank information.

In the official press briefing, Attorney General Becerra emphasized the importance of business owners taking the necessary precautions to avoid “becoming the target of fraud.”

“This investigation remarkably demonstrates the increasing level of sophistication by which criminal gangs operate in California. The Western States Information Network (WSIN) was honored to support the coalition of agencies that led this investigation,” said Executive Director of Western States Information, Kent A. Shaw.</s>SACRAMENTO (CBS13) – Authorities have arrested 32 suspected gang members accused of carrying out a fraud scheme that stole $1 million through hacking credit card terminals and merchant accounts at medical and dental businesses.

At a press conference today, California Attorney General Xavier Becerra announced a 240-count indictment accusing suspected members of the BullyBoys and CoCo Boys gangs of 63 counts of conspiracy to commit grand theft; 54 counts of hacking, computer access and fraud; 56 counts of grand theft; 59 counts of burglary; and eight counts of identity theft.

As a result of the investigation, about 40 stolen credit cart terminals were recovered along with evidence of fraudulent returns, according to a statement from the Attorney General’s office. Authorities also seized stolen property such as laptop computers and personal files that contain social security numbers and bank information.

“Street gangs target and intimidate our families and businesses to feed their criminal enterprise,” said Becerra. “It takes the collaborative effort of multiple law enforcement agencies to take down criminal gangs. It’s indispensable work if we’re to reclaim our neighborhoods. Today’s announcement serves as a reminder to all business owners to take all necessary precautions to avoid becoming the target of fraud.”

The investigation began as a February 2016 after investigators reportedly noticed similarities between incidents of burglaries and credit card schemes that happened in 13 Northern California counties.

The complaint alleges members of the street gangs, which are located in Antioch, Pittsburgh, and other Bay Area locations worked together to burglarize businesses, steal credit card terminals, then use the terminals to process returns. The value of the returns were put on a debit card the alleged then pocketed.</s>SACRAMENTO, Calif. (AP) - More than 30 purported street gang members have been charged with stealing more than $1 million in what authorities said Monday was an unusually sophisticated credit card fraud scheme.

Members and associates of the BullyBoys and the CoCo Boys street gangs based in the Antioch, Pittsburg, and Bay Point suburbs east of San Francisco defrauded hundreds of victims by breaking into dozens of medical and dental offices to steal credit card terminals and patient records, said state Attorney General Xavier Becerra and police chiefs from three Northern California cities.

The 32 alleged gang members used the stolen terminals to process credit card returns, downloading them to debit cards, according to the 240-count indictment.

“It is easier today and it is more rewarding today to engage in identity theft and financial fraud than it is to go out there on the street and commit physical, violent crime,” Becerra said. “It pays more at lower risk,” though he alleged the gangs used the money to fund other illegal activities that are not included in the indictment.

The investigation began in early 2016 when investigators noticed similarities between burglaries scattered across Northern California.

The indictment handed down last month by a special Sacramento County-based statewide grand jury includes 63 counts of conspiracy to commit grand theft; 54 counts of hacking, computer access and fraud; 56 counts of grand theft; 59 counts of burglary; and eight counts of identity theft.

“It may not be as physically harmful and dangerous as being accosted on the street, but I can guarantee you it hurts just as much” Becerra said.

Nearly 130 law enforcement officers fanned out last week to make 23 arrests, said Walnut Creek Police Chief Tom Chaplin. Another two were arrested over the weekend, while seven remain fugitives, said Deputy Attorney General Tawnya Austin, who heads the attorney general’s e-crimes unit.

Investigators recovered about 40 stolen credit card terminals, dozens of fraudulent receipts, laptop computers and files including social security numbers or bank information.

Street gangs have become more mobile, picking targets over large regions and taking advantage of opportunities like unsecured or unencrypted files or financial equipment, said Sacramento Police Chief Daniel Hahn.

“We’ve all seen high tech crime become the new battleground,” said Chaplin.
California Attorney General Xavier Becerra announces the arrest of 32 East Bay street gangsters linked to a million-dollar fraud conspiracy.