Manhattan District Attorney Robert M. Morgenthau announced today the indictment of an advertiser on the Craigslist Web site for selling counterfeit United States currency, phony certified checks and money orders associated with some of the nation’s largest credit, banking and retail institutions. Through the same criminal scheme, forged New York City and federal government documents and pirated computer software were also being sold.

The defendant, MALIKIM BROWN, a/k/a “XAVIER,” 36, of Manhattan, was arrested on September 18, 2008 after completing a pre-arranged transaction with an undercover detective, in which BROWN sold counterfeit U.S.  currency, American Express and Visa Travelers Cheques, a United States Postal Service money order and pirated computer software.

Following his arrest, police executed a search warrant on a four-bedroom Manhattan apartment formerly occupied by BROWN’S late grandmother and converted into a base for his criminal operation. Inside, police recovered over $25,000 in counterfeit U.S. currency, including both individual bills and uncut sheets of bills; an extensive computer and printing system, including a flatbed scanner with genuine currency resting on the glass; dozens of pre-printed counterfeit bank checks and money orders, including those issued by Wells Fargo, Wachovia, Bank of America and Washington Mutual banks, the Postal Service and MoneyGram International; various forged government documents; and an inventory of pirated computer software.

The investigation began in August 2007 when an advertisement was found in which software made by companies such as Microsoft, Adobe Systems and Symantec, many of which retail from hundreds to thousands of dollars per unit, were being offered for cents on the dollar. After initial contact was made with BROWN through Craigslist, an undercover detective began making direct purchases of pirated Microsoft products from BROWN.

During one of the software purchases, BROWN showed the undercover detective a sample of counterfeit U.S. currency and offered it for sale. After selling the undercover detective increasing quantities of counterfeit money, BROWN offered to sell counterfeit travelers checks and money orders. Over the course of the investigation, BROWN sold the undercover detective over $10,000 in counterfeit U.S. currency and over $15,000 in counterfeit American Express and Visa Travelers Cheques, JP Morgan Chase certified bank checks, United States Postal Service money orders and MoneyGrams co-branded with Wal-Mart, CVS/pharmacy and the American Automobile Association (AAA).

The investigation revealed that some of the same serial numbers printed on counterfeit money sold by BROWN had appeared on counterfeit currency tendered for purchases all over the United States, including Orlando, Florida; Austin, Texas; Los Angeles, California, and; Anchorage, Alaska. It was also determined that serial numbers appearing on some of the travelers checks sold by BROWN had been previously linked to a Lagos, Nigeria-based counterfeiting ring. To date, over 14,000 travelers checks connected to that overseas criminal enterprise have been presented for payment—largely for Internet-based transactions—with a total dollar value of $6,700,000.

As the investigation continued, BROWN offered to sell City of New York birth certificates, federal social security cards and complete W-2 tax returns all of which could be used to obtain government-issued identification and lines of credit in the name of the person listed on the documents in each set. BROWN then proceeded to sell numerous phony documents to the undercover detective, each containing a forged City of New York birth certificate, Social Security card and completed W-2 federal income tax return.

Throughout the investigation, BROWN was found to be posting dozens of advertisements on Craigslist, offering to sell everything, including discount computer software, term paper writing services and airtime on local-access public television.

BROWN was indicted on 35 counts of Criminal Possession of a Forged Instrument in the First Degree,  a class C felony which is punishable by up to 15 years, Criminal Possession of a Forged Instrument in the Second Degree, a D felony which is punishable by up to 7 years and three counts of Trademark Counterfeiting in the Second Degree, Criminal Possession of Computer Related Material and Unlawful Duplication of Computer Related Material, class E felonies which are punishable by up to 4 years, all in prison. Additional charges are pending based on materials recovered during the execution of a search warrant.

Mr. Morgenthau would like to thank New York City Police Department Inspector Brian O’Neill, Capt. Paul Inzirillo, Lt. Enrique Santos, Sgt. Ramon Almodovar, Detectives Dino Polichetti and Christopher George, and the Undercover Detectives of the NYPD's Organized Crime Investigation Division.  For their assistance with the investigation, Mr. Morgenthau would also like to thank the United States Secret Service, United States Postal Inspection Service, Social Security Administration Inspector General’s Office, City of New York Vital Records Bureau; Peter Conlin of I.P. Investigations, Inc. and Investigator Monty Montgomery of Microsoft.

The investigation was conducted by Assistant District Attorneys Jordan Arnold and Annie Siegel, who also presented the case to the grand jury and will be in charge of the prosecution.

Defendant Information

MALIKIM BROWN, a/k/a “XAVIER”, 11/20/1971
164 West 136th Street
New York, New York

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