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Vista man gets 10 years in ID theft plea deal

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A Vista man who authorities say ran an identity-theft ring on behalf of a white supremacist prison gang pleaded guilty Wednesday in Orange County Superior Court to 24 counts of theft and forgery.

Authorities say he may be just one of nearly 100 people involved in a larger criminal operation.

Michael Alexander Hartsell, 50, owner of Vista-based First Choice Mortgage, faced 96 years in prison if convicted of all 187 counts against him, according to prosecutor David Demurjian. At Wednesday's hearing, Hartsell was sentenced to 10 years.

In March, Hartsell and three other North County residents were arrested at Hartsell's home. There, according to police, his company facilitated some legitimate loans, but was also a front for stealing personal information used to defraud more than 250 individuals and retailers of more than $500,000.

A fifth suspect was considered a fugitive until sheriff's deputies arrested her in June on an unrelated matter.

Demurjian said criminals have realized that financial crime can be more lucrative and less risky than traditional street crime.

"They're able to generate more money out of these transactions … than sticking up the local liquor store, which is (worth) $300 or $400," Demurjian said. "Mr. Hartsell's group is reflective of that new business model."

Demurjian declined to comment specifically on portions of the case that involve prison inmates, but did say that the pool of possible suspects is hovering around 75 people and is likely to grow.

In the Hartsell case, charges ran the gamut from opening fraudulent credit card accounts to forging California identification cards to commercial burglary.

While Hartsell's ring is believed to be responsible for 250 victims, the number of victims affected by connected rings is closer to 1,000, Demurjian said.

The Orange County Sheriff's Department initiated the investigation, which grew to include the FBI, Drug Enforcement Administration, the Secret Service, San Marcos sheriff's detectives, and Escondido, Carlsbad and San Diego police departments.

Three of Hartsell's co-defendants have also entered plea agreements, according to officials.

Demurjian said that William Andrew Padworski, 47, of Oceanside, took a deal with two years and eight months in prison and that Patricia Ann Mcintosh, 42, of Vista, will soon be sentenced.

Natasha Chiara DiLorenzo, 31, of Oceanside, has already been sentenced to two years, court records show.

In March, a judge issued a warrant for Laurrisa Laurrainne Ballow, 39, who remained a fugitive until her June 2 arrest by San Diego County deputies on unrelated charges.

Ballow is scheduled to be arraigned Sept. 14, according to court records. County booking logs show she remains in custody.

Lt. Hernando Torres of the Sheriff Department's financial crimes division said that there is a simple and affordable piece of technology that can help prevent identity theft before it occurs: a paper shredder.

Though much fraud involves computers, even more of it starts with bills, credit card offers and other paper documents that contain personal information and are simply chucked into a trash can rather than destroyed, Torres said. He has even recommended giving shredders as Christmas gifts.

"It sounds funny … but it can save a lot of headaches," he said. "Even as we speak, there are scavengers on the outside looking for those documents."

Contact staff writer Colleen Mensching at (760) 739-6675 or cmensching@nctimes.com.

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