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John Durham, the United States Attorney for the District of Connecticut announced this week that Waterbury resident Janzayb Khan, 29, has been sentenced to five years probation for his involvement into the scheme that “defrauded more than a dozen financial institutions, and for attempting to cover up his role during a bankruptcy proceeding.”
According to the court documents and statements made in court, Khan provided his personal information to a co-conspirator so that said co-conspirator could obtain credit cards in his name. In total, the co-conspirator obtained 31 credit cards in Khan’s name from more than a dozen financial institutions.
Officials said that in many cases, the credit card applications contained false statements about Khan’s income, assets, address and employment history. Then, within a short period in January 2013, nearly all of the available credit on the cards were “rapidly utilized or ‘busted out,’” with more than $59,000 spent on cash advances, gift cards and precious metals. Some of the proceeds from the cash advances were deposited and/or transferred to bank accounts in the name of Khan’s co-conspirator and the co-conspirator’s relatives.
Additionally, nearly $70,000 was charged in “sham transactions at three merchants, who then issued checks from the proceeds that were later deposited into bank accounts in the name of the co-conspirator and his relatives.
For his role in the scheme, Khan was paid approximately $10,000 in cash.
Officials said that after the bust-out, there was more than $165,954 in accumulated debt on the 31 cards in Khan’s name. In June 2013, Khan filed for Chapter 7 bankruptcy in U.S. Bankruptcy Court and attempted to discharge all of his credit card debt. In his bankruptcy court filings, Khan falsely stated that the majority of his debt was due to gambling losses as casinos. He also made a number of other false statements under oath during an examination by the U.S. Trustee in his bankruptcy case. The U.S. Bankruptcy Court later denied the discharge of Khan’s debts.
Khan was arrested on April 4 last year and pleaded guilty to one count of conspiracy to commit bank fraud and one count of making a false oath in a bankruptcy proceeding on Dec. 11 last year.
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