Locksmith Scammers Caught and Indicted

UNITED STATES ATTORNEY'S OFFICE
EASTERN DISTRICT OF MISSOURI

RICHARD G. CALLAHAN
United States Attorney

February 18, 2011
For Immediate Release

OWNERS OF FLORIDA LOCKSMITH SERVICE INDICTED IN SCAM TO OVERCHARGE FOR LOCKSMITH SERVICES

St. Louis, MO: The United States Attorney’s Office announced today that the owners of a Florida based locksmith service were charged in a superseding indictment on multiple federal charges involving a scam to overcharge customers for locksmith services, as well as employing and harboring illegal aliens.

According to the superseding indictment, Dependable Locks, Inc., headquartered in Clearwater, FL, managed a national network of locksmith technicians, operating from major population centers across the United States, including St. Louis. It also maintained a full-time staff of telephone operators and dispatchers, who were on duty 24 hours per day in Clearwater. The dispatchers received phone calls electronically forwarded from hundreds to thousands of telephone numbers listed nationwide for emergency locksmith services, all of which forwarded consumer calls to the call center in Florida. The dispatchers received the calls and the business dispatched locksmith technicians from the area of the call to respond. Many of the locksmith technicians working for Dependable Locks were aliens who were unlawfully present in the United States and were not authorized to work as locksmith technicians.

The indictment alleges that the locksmith company engaged in deceptive marketing by purchasing directory listings and advertisements in cities across the United States that identified the business to the public as a set of local locksmith companies. The company’s listings used multiple business names, local phone numbers and fake local addresses that had no affiliation with the company. Phone calls to the listed phone numbers were automatically routed to the company’s call center in Clearwater, Florida. In addition, telephone operators for Dependable Locks were instructed by managers to mislead customers to believe that they would be charged around $54 for a car lockout, while the responding technician was instructed by managers to charge up to $179 for a lockout. Technicians used techniques such as accusing the consumer who objected to the overcharge of "theft of services," threatening to call the police, withholding the customer's keys or driver's license to compel payment or following the customer to an ATM machine to ensure payment.

The locksmith technicians allegedly were allowed to split the profits of the fraudulently procured locksmith services with the company and were required to remit the company's share of the proceeds by regularly purchasing and shipping cash, checks and money orders to the Dependable Locks location in Clearwater, FL.

"After more than a year of following numerous leads with ICE and the Missouri Attorney General's Office, we are pleased to see this case continue to progress," said Postal Inspector J.R. Ball of the St. Louis Field Office. He added, "The U.S. Postal Inspection Service is vigilant in investigating allegations where the mail or postal products are used to conceal or further a crime."

DAVID PEER, Clearwater, FL; and ADAM OLIVKOVICH, address unknown, were indicted by a federal grand jury on one felony count of conspiracy to commit mail and wire fraud, five felony counts of mail fraud, one felony count of conspiracy to harbor illegal aliens for private financial gain and one felony count of engaging in a pattern of hiring unauthorized aliens. MOSHE AHARONI, Clearwater, FL, was indicted on one felony count of conspiracy to commit mail and wire fraud and one felony count of conspiracy to harbor illegal aliens for private financial gain.

Conspiracy to commit mail and wire fraud carries a maximum penalty of five years in prison and/or a fine up to $250,000. Mail fraud carries a maximum penalty of 20 years in prison and/or a fine up to $250,000. Conspiracy to harbor unlawful aliens for private financial gain carries a maximum penalty of 10 years in prison and/or a fine up to $250,000. Engaging in a pattern of hiring unauthorized aliens carries a maximum penalty of six months in prison and/or a fine of $3,000 per alien. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

This case was investigated by the United States Postal Inspection Service, the Missouri Attorney General’s Office and the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI). Assistant United States Attorneys John Sauer and John Ware are handling the case for the U.S. Attorney’s Office.

As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.

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Altic Lock Service - Indianapolis IN 46203

Altic Lock Service is a fellow member of "The Society Of Professional Locksmiths" located in Indianapolis, Indiana.

Barry Campbell, owner of Altic Lock Service, is bonded, insured, and holds two locksmith certifications. He has received further manufacturer training from MAG Manufacturing, Ingersoll Rand Security Technologies, and Arrow Lock. He is a former Professional member of the International Conference of Building Officials. Barry began working as a locksmith over twelve years ago. Altic Lock Service is now in its sixth year of operation.

We, at Master Key Systems America LLC - St Louis Locksmiths, like to recommend ethical and honest qualified professional locksmith companies, whom we know are trained professionals and can service discerning clients in their region.

Choosing a reputeable company is very important to businesses and residents intent on providing first class professional and reliable services designed to protect business or family interests.

The Society Of Professional Locksmiths is a USA based organization that sets a new standard for like minded professional locksmith companies and personnel.

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Square - Our New Credit/Debit Card Processor

Last year, we decided to enroll in a very new payment processing service/product known as Square. What we like about Square's product offering, is it's simplicity in design, process, minimal fee structure and the fact that it's is the brainchild of local St Louis entrepeneurs.

Simple to use, you insert the reader into your website connected smartphone, launch the app and swipe away. Enter a customers email address if they want a copy of the transaction emailed to them and that's it.

This product is a blessing for small businesses everywhere because it takes the pain out of payment processing, puts power back in the hand of the vendor and reduces costs associated with time, labor and computer or peripheral GUI training.

Do yourself and your business a favor, become a Square user and support another St Louis business while reducing your costs and inconveniences.

Your clients and your profits will be happier and higher, for sure.

Blogroid - Blogger and Android collaborate

Techies and early adopters rejoice, Blogger is now an Android app.
This will hopefully make it easier to write new articles and posts of interest and posts them from the field.

This is my first attempt at using the new app, so I hope it works well.

I look forward to posting more articles in this genre using the Blogger app for Android

Schlage Securekey Bumped

The new style Schlage Securekey Lock is the subject of much discussion recently and our post on Schlage Securekey Problems is one of this sites most popular posts. As popular is this sites post on Kwikset Smartkey Problems.

The above video shows how easily the Schlage Securekey Lock can be bumped. It was believed that Schlage's motivation for releasing this lock was to thwart the bump key phenomenon and to also provide the owner with the ability to rekey their own lock, rather than calling the services of a professional locksmith.

The quantity of issues with this product are mounting daily and this new example of the ease in bypassing/bumping or manipulating the lock, should be an indication to prospective buyers of what not to purchase.

These locks are primarily available at big box hardware stores like Home Depot and Lowes. No self-respecting, ethical, honest retailer can offer this product for sale in my opinion.

Search Engine Statistics for January 2011

Here are the top 10 January's search stats that lead people to this website.

Interesting to note how many people seem to be searching for information on the Kwikset Smart Key Problems and the Schlage Securekey Problems.

Our Keyed Pocket Door Lock continues it's amazing run in popularity, too.

Kaba-Ilco Simplex 1000 Fault

Pictured here is the Kaba-Ilco Simplex 1000 Access Control lock, that is the subject of a wide ranging lawsuit previously mentioned.

The fault, which renders this lock totally insecure, can be easily performed by anyone using a rare earth powerful magnet, that is easily purchasable for about $125.00

Many government departments, institutions including hospitals, police stations, computer rooms, schools, medical facilities, file rooms etc, that have this lock or similar range of mechanical access control locks (Simplex 1000, 2000, 3000, 4000, 5000 series etc) are now vulnerable to this simple "hack".

I feel that displaying the method here would be very inappropriate, however you can find it yourself (with a bit of digging) through the source below.

Suffice to say, I believe that any purchaser of this lock or similar, needs to be made aware of the fault and appropriate action be performed to replace it/them with a more secure device.

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EDIT: February 1 2011. Kaba-Ilco could have produced a fixer for their flagship product. Apparently, the newer models released in January this year, may be impervious to the magnet attack. (source...)

Xena - Padlock Alarms that are a cut above

Xena, a manufacturer of intelligent alarms that are portable, inexpensive and functional with the added ability of also being padlocks and other security devices are a new style product combining both physical and electronic security.

The many and varied uses for their products, augment well, an increasingly specialized market that demands quality and affordable products tailored at consumers desires to increase the security of their personal fixed and mobile applications.

The Bullet-Lock Alarm is a unique product that can be used on a multitude of applications.

I continue to be a skeptic of the value of alarm systems, however when a product comes along that incorporates both an alarm and a physical security product, I can only see a seldom seen combination that might actually improve the security of your property.

The Disc-Lock alarm, not only alarms your motor cycle, but actually prevents it cycle from being driven away.

A 110dB alarm, is often enough to attract the attention of onlookers, a hazard that potential burglars may see as a detriment to their chosen prey.

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