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3rd Person In AmEx Card No. Theft

POSTED: 9:06 pm MST August 17, 2009
UPDATED: 6:44 am MST August 19, 2009

Three Phoenix men are now accused of stealing thousands of American Express card numbers and swindling more than $1 million from customers.

Derek Sawyer was arrested earlier this month in connection with the investigation into the fraud ring. The warrant for his arrest lists 166 felony counts.

Timothy Curley, of Phoenix, is at the center of the Secret Service investigation. Curley was arrested June 24 at Sky Harbor Airport.

Court records obtained by CBS 5 News detail what police confiscated during the arrest: drugs, approximately $5,000, fictitious Arizona driver’s licenses, a laptop computer and more than 100 re-encoded credit cards.

Those bogus cards contained account information for real American Express customers, who had no idea their information had been swiped, according to police.

Police discovered during their investigation that Curley had not only worked as a computer database analyst for American Express, he was one of the few who "could have possibly downloaded all of their account holders information, including the PIN numbers used to access money from ATM machines at various banks," according to court records. Curley had recently been released from that job.

Investigators learned the laptop computer Curley had at the airport belonged to American Express. Curley had reported it stolen out of his truck last August.

No one answered the door at Curley’s north Phoenix home when CBS 5 News went by looking for comment.

When investigators searched Curley’s home, they turned up laminators, card readers, pin pads and more than 20 computers, according to search warrants. Detectives also said they confiscated crack pipes and what officers believed was methamphetamine.

Michael Thomas, of Phoenix, was also arrested. Police said he too had more than 100 bogus gift cards and credit cards that had been re-encoded with information from valid American Express customers.

Investigators also wrote they have surveillance video of Thomas using the bogus cards at ATMs.

A spokeswoman for American Express said the company is fully cooperating with the authorities. She also said American Express actively monitors accounts for fraud and customers are never responsible for any fraudulent charges.

American Express recently began notifying card members whose accounts were breached.

Ed Schmelzel, a Scottsdale retiree, received a letter from the company Monday afternoon. Schmelzel said the letter stated his account had been breached, and promised that he would not be responsible for any fraudulent charges.

“There's always a bit of apprehension of people stealing credit card numbers, Social Security numbers, (and) anything that should be somewhat private," said Ed Schmelzel.

A Secret Service spokesperson would only confirm an ongoing investigation.


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