$2.7M Scam: Orinda Man Faces Federal Charges, US Atty Reports

SAN FRANCISCO, CA — An Orinda man has been been indicted by a federal grand jury in connection with a $2.7 million scam involving a bank and prepaid charge cards, according to the US Attorney's Office in San Francisco. The indictment charges 58-year-old Alan Safahi with bank fraud, four counts of wire fraud, and one count of money laundering.

If convicted on all charges, Safahi faces 30 years in prison and a maximum $1,000,000 fine on each count of bank and wire fraud, and 10 years in prison and a maximum $250,000 fine for money laundering.

The indictment claims that between June 2013 and September 2014, Safahi fraudulently entered into an agreement with a bank that was to be a backer for prepaid charge cards. Safahi’s company, Card Express, allegedly kept two sets of books, one that was accurate and the other was shown to the bank.

The fraud totaled $2,735,531.27, according to the indictment.

Safahi made his initial court appearance Wednesday and was released on a $250,000 bond. His next court appearance is a status and trial setting conference, scheduled for Sept. 13.

The US Attorney's Office reports that this prosecution is the result of an investigation by the Internal Revenue Service.

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