2002-07-22 -- Abussab, Khader -- Plea -- News Release

Paterson Man Admits Credit Card "Bustout," Running up 620,000 in Debt and Declaring Bankrupcy

NEWARK - A Paterson man pleaded guilty today to charges that he fraudulently incurred about $620,000 in credit card debt and then sought to eliminate the debt by filing for bankruptcy, U.S. Attorney Christopher J. Christie announced.

Khader Abuassab, 43, pleaded guilty before U.S. District Joel A. Pisano, who set sentencing for November 7, 2002 at 9:30 AM. Abuassab faces a maximum sentence of five years in prison, a $250,000 fine and an order of restitution for his guilty plea to one count of mail fraud, according to Assistant U.S. Attorney James McMahon.

Abuassab filed a bankruptcy petition on May 17, 2001, seeking to discharge about $620,000 in fraudulent credit card debts, according to the Information.

According to the Information, Abuassab used and permitted others to use his credit cards between February 2000 and May 2001 to obtain approximately $370,000 in cash advances and charge more than $245,000 in goods and services. As the balances on his credit card accounts approached the accounts' credit limits, Abuassab made payments on the accounts with personal or credit card convenience checks or transferred the balances to other credit card accounts. The payments or balance transfers were immediately posted to Abuassab's credit card accounts, which, in turn, increased the amount of available credit on the accounts. The checks Abuassab submitted for payment often were eventually returned for insufficient funds and the balance transfers were often refused.

The Information states that after the payments were credited to his credit accounts - but before the checks or balance transfers were dishonored - Abuassab used the credit cards to make additional purchases and cash advances in excess of the payment amounts. The result, Abuassab acknowledged at the plea hearing, was that he was able to obtain cash and goods far in excess of his credit limits.

Under an Information a defendant waives the right to have his case presented to a grand jury and, instead, pleads guilty to charges presented by the government.

Under U.S. Sentencing Guidelines, Judge Pisano will determine Abuassab's actual sentence based upon a formula that takes into account the severity and characteristics of his offense and criminal history, if any. Parole has been abolished in the federal system. Under Sentencing Guidelines, defendants who are given custodial terms must serve nearly all that time.

Christie credited the FBI Special Agents, under the direction of Special Agent in Charge Louis F. Allen of the FBI's; Inspectors with the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Kevin Burke; and Special Agents of the U.S. Secret Service, under the direction of Special Agent in Charge Jan Gilhooly, with developing the case against Abuassab.

Christie also credited the staff of the Office of the United States Trustee, under the direction of Donald F. Walton, acting U.S. Trustee. The Trustee's office handles the administration of bankruptcy cases.

The government is represented by Assistant U.S. Attorney McMahon of the U.S. Attorney's Securities and Health Care Fraud Unit in Newark.

-end-

Defense Attorney:

Lorraine Gauli-Rufo, Esq. Newark