A Southfield man pleaded guilty to illegally possessing Social Security cards, driver’s licenses, and equipment to make fake documents, all of which were ultimately used to cause over half a million dollars in fraud losses.
Jerome Antwan Andrews, 41, pleaded guilty on Thursday (April 16).In his plea agreement, Andrews admitted to possessing the Social Security numbers and driver’s license information for over 250 people, as well as an identification card printer, an embosser, a laminator, and a card cutter.
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Andrews also admitted that his business model was to create and sell fake Social Security cards and driver’s licenses in the names of real people, and that his conduct caused more than $550,000 in fraud losses.
Having pled guilty, Andrews faces up to 15 years in prison and a fine of $250,000 or twice the pecuniary gain or loss.
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.