2 Area Residents Part of Alleged Fraud Ring

Two San Fernando Valley residents were among the members of a massive counterfeiting ring indicted on federal charges for manufacturing fraudulent American Express charge cards and traveler’s checks, according to authorities.

Charles S. Radford, 41, was arrested last week, one of 10 indicted by the federal grand jury Aug. 20.

But officials are still looking for Granada Hills resident Shashona Carter, 28, in connection with the operation that cost the credit card company at least $1.6 million, a spokesman for the U.S. attorney’s office said.

Radford is suspected of photocopying legitimate traveler’s checks, and Carter is suspected of recruiting people and driving them around the country to use the bogus checks and credit cards, said Assistant U.S. Atty. Charlaine F. Barrera.

Both face at least one count of conspiracy, which carries a maximum sentence of five years in federal prison, but conviction of possession, sale or trafficking of these checks could bring up to 10 years.

During the investigation of the counterfeit ring, conducted by the U.S. Secret Service and the Los Angeles County district attorney’s office, officials said they detected duplicated serial numbers and the lack of security measures found on legitimate checks.

Federal officials allege that several defendants bought real American Express traveler’s checks, which Radford copied using a color laser copier.

The counterfeit checks would then be used by others to make purchases, often involving tens of thousands of dollars worth of checks. The defendants are scheduled to be arraigned Tuesday in U.S. District Court in Los Angeles.