Authorities Seek Cross-Dressers in Credit Fraud

Theirs would be a garden-variety credit-fraud case, but for one detail.

The cross-dressing.

Postal inspectors have accused four Southland residents of stealing more than $1 million between 1996 and late 1998 with fraudulently obtained credit cards.

The twist: Men in the group ordered cards under women’s names and sometimes dressed as women to make purchases with them, Postal Inspection Service spokeswoman Pamela Prince said.

Authorities can’t say for sure whether the gender-bending was a lifestyle choice or an effort at disguise.

“We get a lot of cross-dressing bank robbers too,” said Assistant U.S. Atty. Pamela Johnston, one of two federal prosecutors handling the case.

The ring’s purported leader, Julius Cory Hudson, 28, of San Clemente, pleaded guilty late last month in U.S. District Court in Los Angeles to two counts of fraudulent use of an access device.

Postal authorities still are seeking Hudson’s alleged accomplices: Denise Parker, 48, of Moreno Valley; Tyrone E. Clifton, 28, of Los Angeles, who also goes by Jennifer Fomby and Traci McVea; and Basil Haughton, 28, of Los Angeles, also known as Ank Weeks and Tony, or Toni, Johnson.

The cross-dressing wrinkle is unusual but not unique, federal agents said. Rings of transvestites also have been charged or convicted in credit-card and identity-theft rip-offs in Chicago and south Florida.

Cross-dressing may give perpetrators a larger pool of victims to choose from and could help in eluding capture, consumer groups said.

“There might be a slight advantage in that they can use male or female ID cards,” said Beth Givens, project director of the Privacy Rights Clearinghouse in San Diego, which tracks identity thefts. “But many merchants don’t adequately check ID cards anyway.”

A few credit issuers have pioneered programs designed to balance fraud control with respect for the needs of clients whose lifestyles involve changing their appearance.

In 1994, the Royal Bank of Scotland started providing transvestite account holders with two credit cards, each with a photograph, one showing them as a man, the other as a woman.

Postal service investigators said Hudson’s group swiped personal and credit information by fishing credit checks from the trash at two Riverside County car dealerships. They also stole data from loan applications filed at a bank where Hudson found temporary work in the refinancing department, Prince said.

Ring members used the cards to make cash withdrawals from automated teller machines and purchases at local businesses.

“They bought furniture and clothes and paid for auto repairs,” Prince said. “They even rented limos.”

Hudson--who said at his plea hearing that he was an aspiring actor--was sentenced to three years in federal prison and ordered to pay $330,000 in restitution.

His attorney did not return phone calls.

The Postal Inspection Service asks anyone who knows the whereabouts of Parker, Clifton or Haughton to call (626) 405-1200. Rewards may be paid for information leading to arrests and convictions.

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Keeping Identity Secure

Identity theft has become a pervasive problem and a pivotal element in credit-card fraud. Identity thieves take on the names and financial histories of creditworthy people, using them to order credit cards and take out cash advances. Here are some tips for preventing identity theft:

* Destroy preapproved credit applications, credit-card receipts and old bills. Tear them up before discarding. Always remove credit-card and automated teller machine receipts.

* Cancel credit cards you don’t use.

* Never give out personal or financial information over the phone. That includes your date of birth, mother’s maiden name, Social Security or credit-card number or bank personal identity number.

* Order your credit report once a year to check for accuracy; it’s free.

* Do not allow retailers to write your credit card, driver’s license or Social Security number on your checks. Walk away or use a nationally recognized check card instead.

* If you have a listed telephone number, do not supply your street address or attach titles to your name in the listing.

* Beware of anyone watching you at ATMs or phone booths to get your identity number.

Source: U.S. Postal Inspection Service.