SACRAMENTO, Calif. — Thomas Emil Eide, 51, formerly of South Lake Tahoe, pleaded guilty to bank fraud conspiracy, in which he used fake companies to defraud banks and harm consumers, U.S. Attorney Eric Grant announced.
According to court documents, Eide was the owner of CB Surety LLC (CB Surety). He and his co-conspirators agreed to defraud banks by opening accounts under fake companies and then making sham, small-dollar payments using those accounts and others. They recruited individuals to serve as straw owners for the fake companies and directed them to open these accounts. After, they arranged for their merchant clients, who otherwise would not have been able to open the accounts, to gain access and use them for their own transactions. They also created fake websites and contact information to deceive the banks.
Eide and his co-conspirators also deceived banks by engaging in high-volume microtransactions that artificially deflated their clients’ chargeback rates (the percentage of disputed transactions the banks have to return to customers). By initiating small-dollar payments to make it appear as if their clients had engaged in more transactions overall, they led banks to believe that a lower percentage of their clients’ transactions had resulted in chargebacks and refunds. This manipulation of their clients’ chargeback rates prevented banks from closing their banks accounts due to unacceptably high rates of chargebacks and refunds.
Eide and his co-conspirators caused over $111 million in transactions to be processed on behalf of CB Surety’s clients. Some of these clients were engaged in business practices that were illegal or harmful to consumers, including charging consumers for goods or services that had not been authorized or were not provided. This resulted in over $3.3 million in consumer-initiated refunds and chargebacks.
The United States is seeking additional victims in this case. If you believe you may be a victim, please visit this website to review a list of fake CB Surety companies. You may submit a claim for restitution if you are able to document that you suffered a loss based on unauthorized transactions with these companies.
This case is the product of an investigation by the United States Postal Inspection Service. Assistant U.S. Attorneys Veronica M.A. Alegría and Ethan L. Carroll of the U.S. Attorney’s Office, and Trial Attorney Daniel Zytnick of the Justice Department’s White Collar & Corporate Enforcement Section are prosecuting the case.
A status conference regarding sentencing has been set for November 12, 2026, before Chief District Judge Troy L. Nunley. He faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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