Counterfeiting Suspect Arrested

WESTMINSTER — A Garden Grove man suspected of counterfeiting payroll checks that were cashed by accomplices in at least six states has been arrested by Westminster police.

Thuan Minh Dam, 25, was arrested Thursday at his home in the 11000 block of Westminster Boulevard, where police seized computers, printing equipment, 200 finished checks and enough paper to produce about 10,000 more forgeries, officials said.

“What makes this case unusual is its nationwide scope,” said Westminster Det. Marcus Frank, who led the investigation. “We think [Dam] is one of the largest counterfeiters we’ve come across in terms of the amount of states involved and amount of checks that have been passed.”

Frank said Westminster officers were alerted to the case about six months ago by the Denver Police Department, which opened a racketeering investigation after discovering some of the forged checks.

Police there believed the operation to be based in Southern California and to have gang ties. The officers recently learned the suspect’s gang nickname, which Westminster police recognized as that of Dam, who in the past was affiliated with a local gang.

Frank said that the suspect worked closely with an unknown accomplice, probably an employee of a bank somewhere in Southern California.

“He had a ‘mole’ inside a bank who would target out-of-state [payroll] checks,” Frank said. “When the check was cashed, the mole would make a color copy and pass it to the counterfeiter.”

The suspect would then reproduce the check using sophisticated computer equipment and special check-printing paper, Frank said.

“Most check counterfeiting is crude and easy to pick up,” Frank said. “Here we’re dealing with high-end computer equipment, watermark paper, which is not easy to get, and inside knowledge of the banking industry.”

After printing, the checks would be sent to locations in Georgia, Louisiana, New Jersey and Arizona, where accomplices would try to cash them, he said. Forged identification cards would be included, he said.

Frank said the scheme has been going on since at least 1995 and possibly since 1992.

The checks generally were written in amounts of $800 or less and were cashed at rural banks to avoid arousing suspicion, police said.

Police said they believe that Dam gave half of the money received to the accomplices. Police estimate that he personally garnered about $100,000 last year from the scheme.

But, Frank said, “since we’re dealing with at least six states, we really don’t know how much money was generated.”

Dam is expected to be arraigned Monday on charges of conspiracy to commit forgery. Frank said Denver officials are considering filing a more serious charge of racketeering.