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Showing posts with label Counterfeiting. Show all posts
Showing posts with label Counterfeiting. Show all posts

Thursday, March 27, 2025

The Heath Kellogg Counterfeiting Ring

     In the old days counterfeiters made funny-money the hard way: they laboriously, and with great skill and craftsmanship engraved metal facsimile plates. The quality of their fake twenties and hundred-dollar bills depended upon the engraving detail, the color of the ink and the softness, strength and feel of the paper used to approximate the government's secret blend. In those days only a handful of forgers possessed the skill and equipment needed to counterfeit money. This made them easy to identify and to catch. But with ink in their blood these men, the minute they got out of prison, returned to their illicit trades. The most skillful counterfeiters were driven by the challenge to produce fake money indistinguishable from the real thing.

     In the late Twentieth Century with advances in computer, photocopy and graphic arts technology counterfeiters produced half-decent fake bills by simply copying real money. At that time American paper currency was the easiest money in the world to counterfeit. In an effort to render bills more difficult to replicate, the U. S. Treasury Department redesigned the larger denominations. (At one time the government printed $500 and $1,000-dollar bills. The largest denomination today is $100.)

     The U.S. government's anti-counterfeiting measures included adding holograms, using inks whose colors change depending on the angle of light, and more color and larger presidential portraits. The first bills to be redesigned were the tens, twenties and fifties. The government didn't issue the new 100s until February 2011.

     The redesigned currency drove the amateurs out of the counterfeiting business but it didn't discourage counterfeiters like Heath J. Kellogg. In 2011 the 36-year-old counterfeiter owned and operated a graphic and web design shop in Marietta, Georgia. In February of that year, Kellogg, who has a history of forged check convictions, began producing fake $50-dollar bills. (Fifties are rarely counterfeited.)

     Kellogg approximated the security threads in government bills by using pens with colored ink that showed up under ultraviolet lamps. He printed out the facsimile fronts and backs separately then glued the sheets together.

     In May 2011 a bank in Atlanta sent the Secret Service seven fake 50-dollar bills. Three months later agents arrested a man in Conyers, Georgia who passed $50-dollar bills that matched the seven fakes that passed through the bank in Atlanta.

     The counterfeit bill passer had purchased his fake bills with a face value of $2,000 for $900 in genuine money. The arrestee identified Mr. Kellogg as the manufacturer of the fake fifties and agreed to cooperate with the Secret Service.

     Agents arrested a second member of the counterfeit distribution ring who also became an undercover Secret Service operative. On November 15, 2012, following the execution of two search warrants and two controlled undercover buys of counterfeit currency from the suspect, agents arrested Heath Kellogg.

     The Assistant United States attorney in the Northern District of Georgia charged Mr. Kellogg with conspiracy to manufacture and distribute counterfeit U.S. currency. Five other men were charged in connection with the passing of Mr. Kellogg's contraband product. The federal prosecutor believed that Kellogg and his accomplices injected $1.1 million worth of fake $50-dollar bills into the local economy.

     In November 2013 a jury found Mr. Kellogg guilty as charged. On March 24, 2014 the federal judge sentenced him to 12 years in prison.

     Two days after the counterfeiter's sentencing the judge sent accomplice Stacy P. Smith to prison for three years. Following his prison stretch he faced three years of supervised release. The judge sentenced four other members of the Kellogg counterfeiting ring in March 2014. Those sentences ranged from 18-months behind bars to five years probation.

Saturday, September 4, 2021

The Unsuccessful Counterfeiter

The most difficult, intricate crime involves counterfeiting money. Wait, let me rephrase that. The most difficult, intricate crime is successful counterfeiting. Unsuccessful counterfeiters are everywhere, particularly in prison, having failed to live up to their expectations.

Chuck Sheppard, America's Lest Successful Criminals, 1993

Thursday, January 14, 2021

U.S. Counterfeit Bills From China

U. S. Customs and Border Protection officers, on December 19, 2019, were asked by the Secret Service to inspect a rail container at the international port of entry that connects the cities of International Falls, Minnesota and Fort Frances, Ontario, Canada. The CBP officers seized 45 cartons containing 900,000 counterfeit $1 bills. The shipment had originated from China. The seizure was turned over to the Secret Service that determined the bills were counterfeit. 

Wednesday, October 31, 2018

Counterfeiting: The Crime We Don't Hear Much About

     A man residing in Kampala, Uganda was charged in Pittsburgh, Pennsylvania of leading an international counterfeit currency operation. The U.S. Attorney's office for the Western District of Pennsylvania and the U.S. Secret Service filed a criminal complaint in Pittsburgh on December 18, 2014 against 27-year-old Ryan Andrew Gustafson, aka Jack Farrel and Willy Clock…

     While living in the U.S., Gustafson resided primarily in Texas and Colorado, but allegedly rented a postal box at the UPS Store on Pittsburgh's South Side for some of his operations. The Secret Service began investigating the passing of counterfeit Federal Reserve Notes believed to have been manufactured in Uganda. The phony bills were passed in retail and businesses in Pittsburgh…

     Agents determined that Gustafson had passed the notes. The federal investigators also learned that on February 19, 2014 the suspect received three packages from Beyond Computers in Kampala, Uganda…Secret Service agents searched the packages and found $7,000 in counterfeit $100, $50 and $20 notes in two hidden compartments inside one of the packaging envelopes. A fingerprint on a document inside one of the packages belonged to Gustafson…

     A search of Gustafson's residence turned up two million Ugandan shillings, $180,420 in counterfeit bills, and counterfeit denominations of several other countries…

     The U.S. Secret Service estimates $1.8 million in counterfeit Federal Reserve Notes have been seized and passed in Uganda. The total amount of counterfeit money made in Uganda was about $270,000…

     United States law provides for a maximum sentence of 25 years in prison for counterfeiting….

"Man Charged in Counterfeit Money Scheme," Associated Press, December 19, 2014