Auto Repair Shop Owner Pleads Guilty to Using Stolen Customers’ Identities in Fraud Scheme

(Norfolk, VA) – Charles E. Perry, Jr., age 45, of Suffolk, pled guilty today in Norfolk federal court to engaging in wire fraud and aggravated identity theft stemming from his operation of “tune and lube” auto repair businesses in the Hampton Roads area. Chuck Rosenberg, United States Attorney for the Eastern District of Virginia, also announced that sentencing is scheduled before Senior United States District Judge Henry Coke Morgan, Jr., on July 1, 2008. Perry faces a maximum sentence of 20 years in prison and a fine of $1,000,000 on the wire fraud charge, and a mandatory, consecutive sentence of two years in prison on the aggravated identity theft charge. As part of the guilty plea, Perry agreed to forfeit to the United States his equity in his Suffolk residence, one custom and two Harley-Davidson motorcycles, and a Mercedes-Benz roadster.

According to court records, Perry used his auto repair businesses, previously located in Norfolk, Hampton, and Virginia Beach, to conduct assorted, fraudulent criminal activities in violation of federal law. Perry regularly stole the identities and credit card numbers of customers seeking vehicle repairs. He then used this data in various ways. For example, Perry applied for credit card merchant accounts and business cash advances in customers’ names. Perry also used customers’ identities to open dealer accounts with vendors and then ordered parts and supplies for which he never paid. Perry also fraudulently charged customers’ credit card accounts for repairs that were either improperly or never performed. The known losses are estimated at more than $500,000.

This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Robert Krask is prosecuting the case on behalf of the United States.