Assemblyman Neil M. Cohen

COHEN LEGISLATION WOULD REQUIRE PHOTO ID FOR NJ PRE-PAID CELL PHONE PURCHASES
Arrests for Alleged Connection to Terror Groups Highlight Need for New Laws

(TRENTON) - Deputy Speaker Neil M. Cohen today cited the recent arrests of two groups of men accused of supporting terrorism through the purchase and resale of hundreds of pre-paid cellular phones in calling for swift action on legislation that would require customers to present valid photo identification before being allowed to purchase pre-paid phones.News from
Assemblyman Cohen

For Release:
August 14, 2006

Contact:
Assemblyman Cohen
(908) 624-0880
James Sverapa IV
(609) 292-7065

COHEN LEGISLATION WOULD REQUIRE PHOTO ID FOR NJ PRE-PAID CELL PHONE PURCHASES
Arrests for Alleged Connection to Terror Groups Highlight Need for New Laws

(TRENTON) - Deputy Speaker Neil M. Cohen today cited the recent arrests of two groups of men accused of supporting terrorism through the purchase and resale of hundreds of pre-paid cellular phones in calling for swift action on legislation that would require customers to present valid photo identification before being allowed to purchase pre-paid phones.

According to news and wire reports, two 20-year-old men were stopped for a traffic violation in Ohio last Tuesday. Once stopped, police found $11,000 in cash, 12 cell phones, airline passenger lists and information on airport security, and a map marking Wal-Mart stores from Ohio to South Carolina. After their arrest, the men admitted to buying approximately 600 prepaid cell phones and reselling them to someone in Dearborn, OH, a nexus of US investigations into Hezbollah and Hamas activity.

On Friday, three Texas men were arrested on terrorism-related charges in Michigan following the purchase of 80 pre-paid cell phones from a local Wal-Mart. A search of the men's minivan uncovered about 1,000 additional pre-paid cell phones. The men were buying the phones to sell to a man in Dallas for a profit of about $5 per phone.

"Allowing the sale of prepaid cell phones to anyone without first requiring photo ID creates a huge communications blind spot just begging to be exploited by criminals and terrorists alike," said Cohen (D-Union), the author of New Jersey's landmark "September 11th, 2001 Anti-Terrorism Act," (formerly A-911). "There is no difference in how a pre-paid cell phone and a regular cell phone operate and there should be no difference in how they are sold."

Cohen's legislation (A-321), which was first introduced in 2005, would make it illegal for any retail establishment in New Jersey to sell or offer pre-paid wireless telephone equipment or service to any customer who does not first present a valid photo driver's license or non-driver photo identification card.

The bill also would require the retailer to record the telephone number assigned to the pre-paid plan or equipment, would require the retail establishment to make a photocopy of the ID, and would require both the telephone number and the ID be kept on record for at least two years from the date of purchase.

Cohen said the need for this legislation became apparent when he went to buy a cell phone. In order to make his cell phone purchase, he was required to present his photo ID. This requirement, however, does not extend to the pre-paid cell phones that can be purchased in most stores in New Jersey and around the country.

Violators would be subject to up to $10,000 for a first offense and up to $20,000 for all subsequent offenses. Violations also could result in the assessment of punitive damages and cease and desist orders issued by the Office of the Attorney General.

According to Cohen, requiring merchants to keep a phone number and photo ID record for each cell phone purchase in New Jersey could be a valuable tool in preventing terrorist activities, gang activity, and drug dealing. Cohen noted that many drug dealers are already purchasing pre-paid cell phones by the dozens, as they are notoriously hard to trace and form a steady supply of "clean" phone numbers - making it difficult for law enforcement to pinpoint and keep track of drug trafficking activities.

Cohen said the recent arrests suggest terrorists may be doing the same thing, making it critical that presenting and recording photo identification be required prior to the sale of pre-paid cell phones in New Jersey.

"Since the current Congress has taken no action to correct this problem, I would hope that every state in the country will work to enact similar legislation, so that we create a national policy of protection on a state-by-state basis," said Cohen.

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