A former Army recruiter admitted using the identities of seven people to open credit union accounts without their knowledge.
Jane Crosby then posed as the victims while seeking approximately $266,000 in loans and credit card accounts. She also deposited fraudulent checks, withdrew money and used a credit card opened in one victim’s name to purchase airline tickets.
Crosby, 35, of Jersey City, pleaded guilty in Newark federal court to one count of bank fraud and one count of aggravated identity theft, according to NJ.com.
Her plea agreement requires her to pay approximately $18,150 in restitution to the credit union.
The Accounts Were Intended to Help New Soldiers Receive Their Pay
Crosby worked as a sergeant first class and recruiter at an Army recruiting station in East Orange, New Jersey. Between September and December 2023, she submitted applications for seven “Pre-Active Duty Membership” accounts. Those accounts are intended to prepare incoming service members to receive direct deposits of their military salaries after entering active duty.
The applications contained the victims’ names and Social Security numbers, along with copies of documents that included passports, driver’s licenses and Social Security cards. Crosby obtained the personal information through her position and submitted the applications without the victims’ knowledge or permission, according to the U.S. Attorney’s Office for the District of New Jersey.
Only one of the seven people ultimately joined the Army. Several others had applied, attempted to enlist or visited the recruiting station, while court records say two had no known affiliation with the military.
She Posed as Victims During Calls to the Credit Union
After the accounts were opened, Crosby applied for loans and credit cards using the victims’ identities. The applications sought approximately $266,000 in available financing.
Investigators connected calls about the accounts to Crosby’s personal telephone number, the East Orange recruiting office and another number registered through the recruiting station’s internet address.
During some calls, a woman allegedly disguised her voice and posed as the person named on the account while attempting to obtain account information or remove restrictions. In one conversation, the caller claimed that a recruit’s wife had accessed his account while he was completing military training. The recruit later told investigators that his wife did not speak English and had not made the call.
Fraudulent Treasury Checks Were Deposited Into the Accounts
Crosby used several of the unauthorized accounts to deposit checks that appeared to have been issued by the U.S. Treasury. The credit union rejected many of the checks after identifying them as suspicious. Most of the loan and credit card applications were also denied, canceled or blocked.
Some deposits were successful, however, allowing thousands of dollars to be withdrawn through ATMs, money orders and other transactions. Court records describe one account in which approximately $8,575 in checks was deposited before about $4,324 was removed. Another account received a $19,705 check before more than $17,400 was withdrawn.
The plea agreement calculates the credit union’s loss at approximately $18,150, considerably less than the $266,000 in financing Crosby attempted to obtain.
One Credit Card Paid for a Trip From Las Vegas
A credit card carrying a limit of approximately $14,900 was approved in one prospective recruit’s name in November 2023. The address associated with the account was changed to the recruiting station shortly after the card was approved.
Crosby used the card to purchase two airline tickets from Las Vegas to New York City, according to court records. One ticket was issued in her name and the other in the name of a relative.
The person whose identity was used knew nothing about the account, credit card, checks or airline purchases. He had previously attempted to enlist through the recruiting station but did not join the Army.
The Guilty Plea Carries a Mandatory Additional Prison Term
Crosby pleaded guilty before U.S. District Judge Susan D. Wigenton to one bank fraud count covering the seven victims and one aggravated identity theft count connected to the person who joined the Army.
Bank fraud carries a maximum possible sentence of 30 years in federal prison and a fine of up to $1 million, or twice the gross gain or loss from the offense. Aggravated identity theft carries an additional mandatory two-year prison term that must run consecutively to any sentence imposed for the bank fraud conviction.
The sentencing judge will consider federal law, sentencing guidelines and the terms of her plea agreement before imposing a sentence. A sentencing date had not been publicly reported.
Monitor Your Identity After Providing Recruitment Documents
Military applicants and other consumers who provide copies of passports, licenses, Social Security cards or financial records should retain a list of the documents submitted and the organization or employee who received them.
An unexpected bank notice, credit inquiry, debit card or account-verification message may indicate that someone used the information without authorization. Anyone who discovers an unfamiliar account should contact the financial institution’s fraud department immediately and request that the account be restricted or closed.
The Federal Trade Commission says consumers can place free credit freezes with Equifax, Experian and TransUnion to make it more difficult for an identity thief to open new credit accounts. Identity theft can be reported through IdentityTheft.gov, which provides an identity theft report and a personalized recovery plan.