COLLEYVILLE, Texas — The Colleyville Police Department says four people were arrested in connection with a fraud ring involving altered Walmart gift cards.
The investigation began on July 12, 2023, when an elderly victim from Colleyville sent a $100 Walmart gift card to a friend in Louisiana, the department said. But a week later, when the friend attempted to use the gift card - it had no balance, according to police.
Colleyville PD says the number stamped on the gift card did not match the number on the gift card authorization receipt. Investigators say they quickly discovered the victim’s gift card was cloned to match a different Walmart gift card.
The victim’s $100 was spent by one of the suspects to buy beer and a KitchenAid Stand Mixer at two separate Tarrant County Walmarts, according to police.
Less than one week later, Colleyville PD says they learned about another local victim who purchased a $50 Walmart gift card for a fellow church member but that it had no balance when the recipient attempted to redeem it a few days later.
Toward the end of July, investigators arrested 42-year-old Geandy O’Reilly, accusing him of placing cloned Walmart gift cards on the display stands and using the victim-loaded balance on the cards for his personal gain.
In 2022, O'Reilly pleaded guilty to similar criminal offenses and was sentenced to 36 months' probation, officials say.
Officials say they discovered O'Reilly would travel to Walmart locations across Texas and commit these crimes while others acted as lookouts. When the customer purchased a compromised gift card, the thieves aimed to spend the money before the rightful owner could, police allege.
According to a news release, O’Reilly spent the victims’ money to buy $2,500 worth of lobster tails from Sam’s Club, $5,708 worth of jewelry, $3,322 worth of large screen TVs, $5,645 worth of kitchen appliances, and much more.
During the investigation, Colleyville PD says they contacted 15 victims in the DFW area, with the number of total victims exceeding 1,000.
On September 29, 2023, near O'Reilly's home, Colleyville PD and the U.S. Secret Service (USSS) arrested Anisel Matososa,35, Ernesto Mato, 56, Mayluis Novoa, 42, and O’Reilly.
Police say numerous altered Walmart gift cards were found during a search of O'Reilly's home and vehicle. In total, investigators recovered around 6,975 altered gift cards.
In addition:
- $3,181
- 2 Card reader writers
- 50 cases of Modelo Especial beer
- 38 cases of Corona Extra beer
- 1 Laptop computer
- 6 Cell phones
- 6 Flat screen TVs
- PlayStation 5
Evidence on O’Reilly’s cell phone led investigators to other crime rings committing similar crimes in multiple states across the country, officials say. Police say some suspects have been arrested in connection with cloning gift cards, while other investigations are still pending.
All four suspects were charged with fraudulent possession and use of counterfeit cards, engaging in organized criminal activity, theft of property, and money laundering.
After this investigation, Walmart implemented new safety measures to help prevent future incidents.
The FTC suggests checking the back of a gift card before you purchase it to see if there are any signs of tampering. Buyers should hold on to store receipts for the card in case of fraud, which can be reported to gift card companies.