State College police on Tuesday arrested two men accused of attempting to steal thousands of dollars from local banks using stolen identities and fake drivers’ licenses.
Arthur W. Smith, 63, of New Jersey, and Jason Arzu, 24, of New York, both admitted to participating in the scheme, according to an affidavit of probable cause.
At about 1:10 p.m. on Tuesday, Smith entered the First National Bank at 366 E. College Ave. and presented a suspected fake drivers license to request two months of bank statements, police wrote. A bank teller recognized Smith as the same man that staff were notified had attempted fraudulent activity at a Juniata County branch earlier in the day.
Smith, the teller told an officer, was picked up by a person driving black Nissan Altima.
Soon after, Smith was spotted in front of the First National Bank branch at 1811 S. Atherton St. According to the affidavit, Smith provided his real name but was found to have a driver’s license with a different identity.
After waiving his Miranda rights, Smith told an officer he was in State College doing “illegal stuff,” with another man who provided him with fake IDs and dropped him off at banks, police wrote. He allegedly said he was instructed to obtain financial statements and, if sufficient funds were available, to withdraw $5,000, from which he would receive a cut.
The three attempts were unsuccessful, and Smith said he was doing it because he is “broke and has medical issues,” police wrote.
A Spring Township police officer, meanwhile, spotted the Altima linked to the theft attempts and initiated a traffic stop. The driver, later identified as Arzu, was taken into custody after he was unable to provide identification and refused a portable fingerprint identification at the scene, according to the affidavit.
A search of the vehicle found three debit cards that did not belong to Arzu, police wrote.
Arzu allegedly told a State College lieutenant that he acquired the fake IDs through the dark web and was instructed to pick them up at a gas station in New Jersey, where he found them in an envelope. He said he does not know the person who creates the IDs, adding that the person is careful with how they communicate and will not meet face-to-face.
He admitted that he and Smith were in possession of the fake IDs and bank cards, that he drove Smith to three First National Bank locations and that he and Smith conspired to withdraw $5,000 or more from the accounts, according to the affidavit.
Both men are charged with two felony counts each of forgery, attempted forgery, access device fraud and identity theft, as well as four felony counts of attempted theft.
Smith and Arzu were arraigned on Thursday by District Judge Don Hahn, who set bail for each at 10% of $220,000. Both were unable to post bail and are jailed at the Centre County Correctional Facility.
Preliminary hearings are scheduled for April 17.
