How a Con Artist Made Millions by Creating Fake Identities

Manufacturing Synthetic Identities

• 💡 The process began with obtaining Social Security numbers for non-existent children by repeatedly calling the Social Security Administration with fabricated stories.
• 🔑 A crucial step involved creating a fake birth certificate and a fake shot record, using county website examples to ensure authenticity.
• 🎯 With these documents, the individual could then apply for and obtain a social security number for the fictitious person.

Building Credit and Opening Accounts

• 💳 After obtaining a Social Security number, secured credit cards were applied for, and by making consistent payments, a credit score was established for the non-existent individual.
• 🏦 This allowed for the opening of bank accounts and the acquisition of other financial instruments under the synthetic identity.
• 🏠 The ability to create driver's licenses and other forms of identification in the fake name was essential for legitimizing these synthetic identities.

Real Estate and Mortgage Fraud

• 📈 Synthetic identities were used to purchase houses for low amounts, then inflated the recorded value to secure larger mortgages.
• 🏢 The use of shell companies allowed for the creation of fake W2s and pay stubs, further legitimizing the synthetic identities for loan applications.
• 📝 Fake bank statements and canceled checks were used to deceive lenders, with the fraudster or associates often answering verification calls.

Evading Detection and Consequences

• 📰 To explain non-payment on loans, fabricated news articles about severe accidents were used to claim the borrower was incapacitated.
• 🕵️ When discovered, the fraudster would negotiate with lenders, offering to help sell off fraudulent properties to avoid reporting the full extent of the fraud to authorities.
• 🏃 The individual went on the run, undergoing significant plastic surgery and obtaining numerous fake IDs and passports to evade law enforcement, including the FBI and Secret Service.

Exploiting Vulnerable Populations

• 🏘️ In an attempt to use identities of people not actively using them, the fraudster surveyed homeless individuals, offering them cash for their personal information.
• 💳 This information was then used to obtain driver's licenses and passports, enabling further fraudulent activities, including owner-financing of properties.
• 💰 Multiple loans were taken out simultaneously against these properties, leading to significant sums of money being withdrawn before the fraud was uncovered.