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Man Accused of Credit Card Scheme

Associated Press - May 15, 2015 6:29 am

Federal prosecutors say a Kansas man illegally obtained credit card rewards to collect more than $143,000.

U.S. Attorney Barry Grissom’s office says 31-year-old Jawad Obaid of Lawrence was charged Wednesday with 10 counts of wire fraud. The indictment says Obaid obtained credit cards with Capital One, Chase and U.S. Bank and used their rewards program websites to make purchases from businesses on those sites.

Prosecutors say Obaid generated tens of thousands of reward points from credit card companies by making several big purchases and cancelling them within 24 hours. He is accused of redeeming the reward points to redeem cash awards in checks and direct deposits to his accounts.

Online court documents did not indicate Thursday whether he was in custody or had obtained an attorney.

Fred Hanson

May 15, 2015 at 9:38 am

Smart guy and unless there are provisions in his agreements with the banks saying he could not do this he will probably walk.

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