Four Charged in Stolen Social Security Bankruptcy Scheme
Federal authorities arrested four defendants who allegedly used others' Social Security numbers to obtain retail credit and file for bankruptcy in California.
Updated on Nov. 6, 2026 in Debt Relief
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Four defendants were arrested on Sunday, November 1, on charges of fraud in connection with access devices over $1,000 after allegedly using Social Security numbers not assigned to them to obtain credit. A fifth defendant, Moisés Ortuño-Claras, remains sought by law enforcement.
Why it matters
The defendants allegedly sought to erase over $140,000 in debt through bankruptcy filings in the Central District of California, which relied on sworn declarations about the misused numbers. The case highlights how identity misuse can be used to exploit the bankruptcy process.
Four defendants were arrested and charged with access device fraud over $1,000, each facing a statutory maximum of 15 years in federal prison if convicted. The fifth defendant, Moisés Ortuño-Claras, remains sought, and the case has not yet reached a conviction.
The players
Central District of California Bankruptcy Court
The federal bankruptcy court where the defendants filed petitions seeking to erase their debts, and which operates under the U.S. Bankruptcy Code overseen by federal judges.
The details
Each defendant filed for bankruptcy in the Central District of California between February 2025 and May 2025, and each filing included a sworn declaration stating the defendant used a Social Security number not assigned to them to obtain credit. The true SSN holders did not authorize the defendants to use their numbers.
Timeline
November 2021: Espinosa approved for Daniel's Jewelers credit lines using a misused SSN.
February 2023: Ortuño approved for a Bass Pro Shop credit card using a misused SSN.
May 2022 to May 2023: Chávez used a MyPremier card tied to a misused SSN.
February 2025 to May 2025: Defendants filed bankruptcy petitions in the Central District of California.
November 1, 2025: Four defendants arrested.
Legal Context
Federal access device fraud charges, which carry a maximum 15-year sentence, are the statutory framework applied here to allegations of misused Social Security numbers in bankruptcy filings. The prosecution follows the pattern of federal enforcement against identity-based credit fraud.
Consumers whose Social Security numbers are misused can face credit damage and debts they did not incur, making early monitoring of credit reports important. Anyone concerned about identity misuse should review their credit reports regularly for accounts they do not recognize.
The takeaway
Regularly reviewing your credit reports can help you spot unfamiliar accounts tied to your Social Security number early. Identity misuse can surface years after it begins, so periodic checks matter.
Further reading
Explore more on Debt Relief to understand how bankruptcy filings and debt discharge work.
Source note: This article includes information reported by Culver City Observer.
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