EUGENE, Ore.—A California woman was sentenced to federal prison today for her role in a multistate credit card “bust-out” fraud scheme that cost multiple banks more than $2.5 million.
Mariam Gevorkova, 37, of Glendale, California, was sentenced to 60 months in federal prison and five years’ supervised release. Gevorkova was also ordered to pay more than $2.5 million in restitution.
According to court documents, in December 2016, the FBI and U.S. Postal Inspection Service (USPIS) initiated an investigation into a credit card “bust-out” fraud perpetrated by individuals residing in the Corvallis, Oregon area.
A credit card “bust-out” is a scheme in which perpetrators obtain credit cards for the purpose of making purchases and running up large balances with no intent to pay. After making credit card purchases, payments are made to the cards from accounts controlled by the perpetrators. After numerous purchases and payments are made, the perpetrators report to their banks that the payments made on the credit cards were not authorized. The banks, in turn, seek and obtain reimbursement from the credit card companies who, as a result, incur a loss when the funds are returned to the perpetrator’s bank.
Gevorkova and her co-conspirators opened credit card accounts using stolen and fictitious identities and used them to purchase jewelry and clothing, fund gambling and vacations, establish and begin operating at least two large marijuana grows, and cover the operating expenses of the Corvallis Cannabis Club, a state-licensed marijuana shop in Corvallis. Gevorkova recruited others into the conspiracy, including Corvallis Cannabis Club employees.
On June 11, 2018, Gevorkova and eight accomplices were charged by criminal complaint with conspiring to manufacture, distribute, and possess with intent to distribute controlled substances and manufacturing, distributing, and possessing with intent to distribute controlled substances.
On August 31, 2020, Gevorkova was charged by criminal information with conspiracy to commit bank fraud, aggravated identity theft, and conspiracy to manufacture or possess with intent to distribute marijuana. Two weeks later, on October 13, 2020, she waived indictment and pleaded guilty to all three charges in the criminal information.
This case was investigated by the FBI, USPIS, and U.S. Drug Enforcement Administration with assistance from Oregon State Police and the Corvallis and Philomath Police Departments. It was prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
###