By Michael Phillips | TXBayNews
DALLAS–FORT WORTH — In a major win for Texas law enforcement and consumers, authorities have arrested three foreign nationals accused of running a large-scale gift card fraud operation that investigators estimate caused roughly $14 million in losses across the state.
The suspects — Kristians Petrovskis, Romualds (also reported as Romunds) Cubrevics, and Normunds (also reported as Nurmunds) Ulevicus — are all citizens of Latvia. Officials say the trio targeted retail stores throughout North Texas, Central Texas, and the Gulf Coast, operating nearly nonstop for months.
The arrests were announced in mid-to-late December and were led by the Texas Financial Crimes Intelligence Center, with assistance from local police departments, the Texas Department of Public Safety, and U.S. Customs and Border Protection.
How the Scheme Worked
According to investigators, the operation relied on a method known as gift card cloning or gift card draining, a fast-growing form of retail fraud nationwide.
Authorities say the men:
- Stole unactivated gift cards from store displays
- Carefully opened the packaging to avoid detection
- Copied card numbers and PINs
- Resealed the cards and returned them to shelves
Once legitimate customers purchased the cards and loaded money onto them, the suspects allegedly monitored activations online and drained the balances remotely—often within minutes.
Investigators seized more than 400 tampered gift cards, and the suspects reportedly admitted they were hitting about 10 stores per day, seven days a week, beginning in May 2025.
Charges Under New Texas Law
All three men now face first-degree felony charges under Texas Penal Code §32.56, a law that took effect September 1, 2025, specifically designed to crack down on gift card tampering and organized retail fraud.
Two of the suspects are being held in the Dallas County Jail, while the third is in the Garland city jail. Immigration holds have also been placed on them as the case proceeds.
FCIC Director Adam Colby said investigators believe the suspects came to the United States for the purpose of committing crimes, though official court filings describe them as Latvian nationals rather than making formal claims about illegal entry. Some social media commentary has labeled the suspects as “illegals,” but law enforcement agencies have not publicly confirmed their immigration status beyond the involvement of federal authorities.
A Growing Consumer Threat
Gift card fraud has exploded nationwide in recent years, with hundreds of millions of dollars in annual losses, according to federal consumer data. Texas lawmakers moved aggressively in 2025 to give prosecutors stronger tools, and this case is already being cited as one of the largest gift card fraud busts in the state’s history.
Law enforcement officials say the investigation remains ongoing, with the possibility of additional charges or linked cases.
How Texans Can Protect Themselves
Authorities are urging shoppers to take extra precautions, especially during holidays and peak gift-giving seasons:
- Inspect packaging for excess glue, loose seals, or damaged edges
- Avoid cards with exposed or scratched PIN areas
- Purchase gift cards from behind the counter when possible
- Keep receipts and check balances immediately after purchase
Why It Matters
For Texas families, this case is a reminder that retail crime is no longer just shoplifting—it’s organized, high-tech fraud that quietly drains money from unsuspecting consumers. For lawmakers and law enforcement, it’s also early evidence that Texas’s tougher stance on financial crimes is beginning to pay off.
As one investigator noted, these scams don’t just hurt individuals—they undermine trust in everyday transactions Texans rely on.
Texas Bay News 
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