Vijay Verma, 49, and Tarsem Lal, 78, both of whom are owners of a jewellery store in New Jersey, have been sentenced to 14 months in prison and 12 months of home confinement, respectively.
Verma and Lal were indicted in October 2013 as part of a scheme to fabricate more than 7,000 false identities to obtain tens of thousands of credit cards.
According to court documents, participants in the scheme doctored credit reports to pump up the spending and borrowing power associated with the cards.
They then borrowed or spent as much as they could, based on the phony credit history, but did not repay the debts – causing more than $200 million in confirmed losses to businesses and financial institutions, federal prosecutors alleged.
These debts were incurred at Verma’s jewellery store, among many other locations, where Verma would allow fraudulently obtained credit cards to be swiped in phony transactions, court papers said.