On July 30, federal prosecutors in New Jersey filed criminal indictments against two California residents for stealing credit and debit card information from over 90,000 Michaels Stores locations in 19 states.  According to the indictments, the individuals skimmed the customers’ card account information for purposes of generating counterfeit bank cards and withdrawing cash from the customers’ bank accounts.  Crystal Banuelos and Angel Angulo were charged with aggravated identity theft and conspiracy to commit bank fraud.  They face up to 32 years in prison and a $1 million fine. Prosecutors allege that the two defendants conspired with others to replace certain card payment machines at 80 different Michaels stores with counterfeit devices equipped with wireless technology that skimmed customers’ bank account information.  They are accused of stealing over $400,000 from customers’ bank accounts after creating fake cards with the stolen information. Michaels was previously sued in a 2011 class action for the card thefts caused by the two defendants and their co-conspirators.  That case was settled for an undisclosed sum.  More recently, Michaels faced three data breach class actions related to the disclosure of customers’ confidential financial information.  Those class actions were dismissed in July 2014 for failure to plead actual economic damages.

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Photo of H. Scott Kelly H. Scott Kelly

Scott is a consumer data and privacy specialist. He regularly defends against data breach lawsuits and class action claims asserted under federal and state consumer-protection statutes (FCRA, FDCPA, TCPA, UCC, UDAAP, RICO). Scott represents companies on an array of data privacy issues, including

Scott is a consumer data and privacy specialist. He regularly defends against data breach lawsuits and class action claims asserted under federal and state consumer-protection statutes (FCRA, FDCPA, TCPA, UCC, UDAAP, RICO). Scott represents companies on an array of data privacy issues, including background screening, consumer reporting, data breaches, ransomware attacks, and related regulatory investigations by the Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), and state attorneys general.

Photo of Michael E. Lacy Michael E. Lacy

Michael heads the firm’s Consumer Financial Services practice, and handles class actions and high-stakes consumer litigation on a nationwide basis. He represents banks, mortgage servicers, debt buyers and collectors, and lenders against claims under consumer protection statutes, including the FCRA, TCPA, RESPA, RICO,

Michael heads the firm’s Consumer Financial Services practice, and handles class actions and high-stakes consumer litigation on a nationwide basis. He represents banks, mortgage servicers, debt buyers and collectors, and lenders against claims under consumer protection statutes, including the FCRA, TCPA, RESPA, RICO, and state UDAP laws. He has significant experience litigating and trying corporate governance disputes, including shareholder derivative claims, corporate dissolution cases, and corporate divorce matters. Michael also represents public utility companies in litigation and regulatory matters, including condemnation and land use cases.