A U.S. Secret Service investigation into a complex credit card device fraud scheme led to a raid on a Pembroke Pines home, resulting in the arrest of two South Florida men.
The raid occurred on Tuesday at a residence on Southwest 156th Avenue, where Secret Service agents and Pembroke Pines Police documented multiple high-end vehicles, including a Range Rover and at least two Mercedes G-Wagens.
According to a criminal complaint, the investigation led to the arrests of Willan Pupo, 36, and Joel Castillo, 38, on multiple charges, including conspiracy to commit access device fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering.
The inquiry reportedly began in April 2024 when the Secret Service received information regarding Pupo and Castillo’s involvement in an ongoing credit card charge-back scheme. The duo allegedly used shell companies to rent point-of-sale terminals, enabling businesses to accept and process customer payments while keeping track of sales.
The terminals were then used to conduct fraudulent transactions, often utilizing stolen credit card numbers, with the proceeds deposited into a bank account. When credit card owners disputed the charges, card issuers reversed the transactions through a process known as “charge back.” However, the registered bank account with the device had no funds, leaving the credit card processing company to bear the loss.
One device set up for just a month in February generated 268 charges, totaling $975,565.10. The money was swiftly transferred to other accounts, and within a day of the initial transaction, credit card companies began receiving calls disputing the charges. Investigators found that 144 transactions were either fraudulent or categorized as “service not provided.”
When credit card companies demanded the funds’ return, the proceeds had already been dissipated, resulting in the credit card processing company incurring a loss of approximately $966,000.
The application for the device included a fake driver’s license and fraudulent bank statements. However, investigators traced the IP address used for the application back to Pupo’s home in Pembroke Pines. They also discovered that the funds were funneled through one account, from which checks were issued to businesses run by Pupo and Castillo.
After the initial device was disabled, a new application for another device was submitted. The Secret Service arranged for a controlled delivery of this device to Pupo’s home, after which Castillo took it to his residence, and several transactions were subsequently made using the device.
Pupo and Castillo have been booked into jail, though information regarding their attorneys was not immediately available.
