A ring of identity thieves recruited waiters at some of New York's most well-known steakhouses to steal credit-card information from diners that was then used to make millions of dollars in illicit purchases, authorities charged on Friday.
Manhattan District Attorney Cyrus Vance Jr. said 28 people were indicted in the case, including waiters accused of covertly swiping credit cards through small devices to record their information just before charging customers for meals.
Account numbers and other data were taken from patrons at Smith & Wollensky's, the Capital Grille, JoJo and Wolfgang's Steakhouse in Manhattan, as well as Morton's restaurant in Stamford, Conn., and the Bicycle Club in Englewood Cliffs, N.J., Mr. Vance said.
At least 50 American Express black- and gold-card holders fell victim to the scheme between April 2010 and this month.
Authorities said the personal information was encoded onto forged duplicate cards that other members of the ring used to buy high-end merchandise and to steal cash from bank accounts.
Mr. Vance identified Luis Damian Jacas, whose nickname is "DJ," as the alleged head of the ring, overseeing "all aspects of the criminal operation."
"This is one organized, intelligent operator," Mr. Vance said.
A lawyer for Mr. Jacas, 40 years old, couldn't be reached for comment.
Another key member is 51-year-old Gregory Portacio, New York City Police Commissioner Raymond Kelly said.
Mr. Kelly said Mr. Portacio served as a "jack of all trades" for the ring, distributing the forged credit cards, advising on store security and fencing the stolen goods for 10 cents on the dollar.
As a 20-year-old, Mr. Portacio was convicted in the 1980 murder of a Queens housewife who was dragged to death alongside his vehicle when, authorities charge, he was trying to steal a necklace that wouldn't break. Mr. Portacio was also later convicted of a sexual assault on a Brooklyn woman, Mr. Kelly said.
"After several stints in prison," Mr. Kelly said, "Portacio turned to credit card fraud." He is still at large, Mr. Kelly said.
The operation enlisted seven waiters, who were known as "skimmers"; their slim, 3-inch-long devices were called "bacon-makers," an indictment said.
Jimmy Macagna, owner of the Bicycle Club, said a part-time bartender at the restaurant was among the accused. "We're all just shocked," Mr. Macagna said.
"I feel like I was victimized by his actions," said Mr. Macagna, whose restaurant opened three years ago.
Morton's Restaurant Group spokesman Roger Drake declined to comment except to say the company will cooperate with police. Representatives from the other restaurants declined to comment or couldn't be reached for comment.
After stolen credit-card information was transferred onto copies, the cards were passed out to "shoppers," who were told how to look and what to buy at stores such as Chanel, Neiman Marcus, Cartier, Hermes, Bloomingdales and Lord & Taylor across the country.
Mr. Vance said investigators don't yet have a total value for the stolen merchandise.
But he said a raid on an East Side storage facility allegedly used by the crew gave a glimpse into the operation: $1.1 million in luxury watches, 100 high-end luxury handbags, $140,000 worth of wine and $1.2 million in cash.
Mr. Kelly credited Detective Kenneth Baker with breaking the case by tracing a legitimate purchase made at the Capital Grille to one of the victims. The card holder then identified the waiter who served his party.
Mr. Vance's chief assistant district attorney, Daniel Alonso, said the case, which comes on the heels of charges against two men accused of stealing debit card information from 1,500 ATM customers, reflects the office's increased focus on cyber crimes.
Write to Sean Gardiner at sean.gardiner@wsj.com
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