Police show tools of prolific ID theft suspect

Published 11:03 pm Thursday, August 27, 2009

EVERETT — Detectives found a surveillance camera carefully hidden inside a painted bird house outside the small shed where police believe identity theft kingpin Craig “Smokey” Allan Galey ran a sophisticated crime laboratory.

Police found computers, scanners, printers, embossing materials inside the shed, along with dozens of stolen documents: check books, mortgage applications and resumes.

Detectives believe Galey had more than 204 victims — mostly from Snohomish and King counties, but some from as far away as California — who collectively lost at least $70,000, officials said Thursday.

“It caused a lot of time and pain,” Edmonds resident David Preston said. He learned Thursday he was among Galey’s victims.

While Preston said he didn’t lose any money, he spent countless hours over six months closing bank accounts, filling out forms and cleaning up the mess caused when criminals started using his bank account.

As computer forensic experts scour information from the evidence seized from Galey’s lab, the number of victims and the total dollar amount stolen are expected to soar.

Galey, 34, of Everett, was arrested early Monday after a yearlong investigation. He’s now locked up in a federal detention center.

Police are calling him the ringleader in one of the most sophisticated and slippery identity theft operations detectives have encountered.

Since the investigation began, 18 people have been arrested. There are at least four more suspects at large, Everett police detective Jamie French said.

Putting Galey behind bars was extremely difficult because he used false identities to check into motels and avoid detection, Everett police Sgt. Mark Thacker said.

“We had a heck of a time tracking him down,” he said.

Galey allegedly used stolen identities to create fake checks and ID cards. His conspirators cashed the checks and shared the proceeds with him, French said.

Late Sunday night, police in Mount Vernon arrested a man who was cashing bad checks. The man told police he got the fake checks from a man named “Smokey” and gave detectives two addresses where they could find him.

It was the break police needed. Around 4:40 a.m. Monday, Everett police and Snohomish County sheriff deputies closed in on the 8- by 10-foot shed in a mobile home park in unincorporated Lynnwood. Galey left in handcuffs.

“This has been very big for us,” French said. “He had everything. He didn’t need to leave his shed.”

The lab inside the shed was the second one belonging to Galey that Everett police seized. In November, they raided an apartment and took in more than 100 pieces of evidence.

Within months, Galey was in operation again, French said. On Monday, police also raided a motel room they believe Galey was using to set up his next identity-producing factory.

In all, detectives logged more than 300 pieces of evidence.

On Thursday, many of the seized materials were on display at a press conference. The objects filled 10 tables. There were 11 printers, printing plates with the Washington state emblem, three dozen credit cards, nine computers, hard drives and piles of compact discs full of software.

“My biggest thought is how easy this was” to pull off, said Marjory Earle. The Seattle woman, 46, and her husband, Chris, discovered in July that someone was cashing bad checks against their accounts.

A clerk from a check cashing store called Chris Earle in late July to report concerns about a check. Earle immediately looked up his bank accounts online and realized he was overdrawn and out about $4,500. After the accounts were closed, another $6,000 worth of bad checks were passed, Earle said.

Ultimately, none of their money was lost, but like Preston, the Earles spent hours clearing their names.

When the couple read about Galey’s arrest in Thursday’s Herald, they called Everett police and learned they were among his victims.

Some simple steps often can help people avoid identity theft, French said. Never leave a purse in a vehicle and always lock your mailbox.

The Earles believe their identity may have stolen during open houses when they were selling their home. Preston said he is mystified how his identity got into Galey’s hands.

On Tuesday, Galey was charged with bank fraud in U.S. District Court in Seattle. He has refused to talk with investigators.

The government will not tolerate people who take money from citizens, merchants and banks, Assistant U.S. Attorney Matthew Diggs said.

“If you are a leader in a identity theft ring, we will come after you,” he said.

Jackson Holtz: 425-339-3437, jholtz@heraldnet.com.