Probe Leads to 5 Arrests in Bogus Credit-Card Scheme

A ring of credit-card counterfeiters headed by a 61-year-old Van Nuys man stole $25,000 to $50,000 worth of merchandise in the San Fernando Valley in the last eight months, Los Angeles Police Department detectives said Thursday.

Lt. Duane Gansemer said a six-week investigation led to the arrest Wednesday night of five suspects who allegedly manufactured and used phony credit cards.

The amount listed as stolen could increase, Gansemer said, as credit-card companies continue to report losses. “I think we’re just scratching the surface of this thing right now,” he said.

$100,000 Bail

The alleged ringleader, Harold Latham, was arrested on suspicion of committing forgery and was being held at Van Nuys Jail in lieu of $100,000 bail.

Also arrested were Lamont Gross, 38, and Lorie Tossey, 24, both of North Hollywood, and Jean Neuman, 51, and Phoenix Neuman, 24, both of Tucson. Detectives said the Neumans were related but that the precise relationship was unclear.

Gross was released on $1,000 bail and the other three were still in custody late Thursday in lieu of $1,000 bail, police said.

Detective Russ Pungrchar said more arrests may be made as detectives, who suspect that other people worked for Latham, continue to investigate.

Hot Irons Used

Police said the group acquired stolen credit cards and used hot irons to flatten out the embossed letters and numbers, then re-embossed the cards with false names. Counterfeit drivers’ licenses were printed to serve as identification for those using the cards, detectives said.

Officers who searched Latham’s residence Wednesday did not find the apparatus allegedly used to alter the credit cards.

Gansemer said Latham handed out the phony credit cards to the other suspects, who used them to buy items such as airline tickets, television sets, clothing and video equipment. He said Latham sold the articles to dealers in stolen goods and gave his accomplices a percentage of the sale price.