Court: Man arrested for possession of ATM skimming devices a flight risk

The federal court yesterday found as a flight risk Xiaolin Yang, a Chinese man who was arrested by Federal Bureau of Investigation special agents for allegedly concealing in his luggage ATM skimming devices.

At a detention hearing, U.S. District Court for the NMI Magistrate Judge Heather L. Kennedy told the parties that Yang is a flight risk based on the nature and circumstances of the offense, the weight of the evidence, and the lack of ties to the community.

Kennedy, however, continued the detention hearing to May 13 at 1:30pm.

Kennedy told the parties that she was inclined to continue the matter after further discussing with the U.S. Probation Officers about possible conditions that may be imposed that would reasonably assure Yang’s court appearance.

The magistrate judge asked attorney Mark B. Hanson, counsel for Yang, about the possibility of the defendant finding a place suitable for location monitoring.

Hanson requested for time to look into the matter.

Kennedy stated her inclination to do a combination of a secured bond and location monitoring.

Assistant U.S. attorney Garth Backe, counsel for the U.S. government, notified the court that the government has seized all cash belongings of Yang and does not intend to release it.

Backe said the government intends to seek forfeiture so Yang will not get the money back.

After the hearing, Yang was remanded into the custody of the U.S. Marshals.

Federal Bureau of Investigation special agents arrested Yang on Friday after they allegedly found ATM skimming devices concealed in his luggage.

The FBI last Friday served Yang with an arrest warrant issued by Kennedy after the U.S. government filed a complaint charging him with illegal possession of device-making equipment.

According to FBI special agent Haejun Park in his affidavit, Yang arrived on Saipan onboard Asiana Airlines Flight No. 625 from Hong Kong via Incheon Korea last Thursday, April 28.

Park said during immigration processing by U.S. Customs and Border Protection, Yang acted suspiciously so he underwent additional screening.

Park said during this additional screening, ATM skimming devices were found inside Yang’s luggage.

Park said an ATM skimming device is a device typically fastened over the top of the factory installed card reader.

Together with a small hidden camera, this device is used by criminals to capture the data from the magnetic stripe on the back of an ATM card (“access device”), as well as the customer’s inputted personal identification number (PIN).

The captured data is later transferred onto a fraudulent ATM card and the captured PIN is used to withdraw money from the account.

Park leads the FBI’s investigation into the skimming devices that were discovered earlier last April on two ATM machines at First Hawaiian Bank in Oleai.

Last April 9, the FBI released 10 photos of individuals wanted by the FBI for questioning in connection to the recent electronic thefts from First Hawaiian Bank accounts held by Saipan residents.

FHB stated that card skimming through their ATMs was believed to be the cause of the unauthorized transactions made in various FHB accounts.