A Federal Grand Jury returned a Superseding Criminal Indictment on April 21, 2010. In 2007, the United States Postal Inspection Service was contacted by an employee of GE Money regarding the activities of Deloatch. It was determined that between August 30, 2001, and May 2007, Deloatch opened approximately 14 business credit card accounts and attempted to open at least 46 business credit card accounts with Walmart, Sam’s Club, Lowes, and others, using fictitious business names and addresses.
The investigation determined that Deloatch would open the accounts in one of three ways: mailing the application, applying through the Internet, or applying for the account in person in the store. Once Deloatch applied for the business credit card, the card and subsequent statements would be mailed to him at a relative’s post office box address. Deloatch would then use the credit card to buy items.
Although he would make check payments on the accounts, checks were returned as either non-sufficient funds, account closed, or no such account. This form of payment served to return available credit to the account allowing Deloatch to buy more when the checks were in transit, thereby allowing amounts to exceed the original credit line.
The investigation also revealed that Deloatch opened approximately nine business credit card accounts with Citigroup Financial using fictitious business names and addresses. Because of the scheme, GE Money and Citigroup Financial suffered losses of approximately $200,000.
At sentencing, set for May 31, Deloatch faces up to 20 years imprisonment on the mail fraud count and up 30 years imprisonment for each bank fraud count.
Investigation of this case was conducted by the United States Postal Inspection Service. Assistant United States Attorney Felice McConnell Corpening represented the government.
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