NEW YORK, Nov 18 (Reuters) - State and federal authorities announced Friday they had dismantled a 28-member identity-theft ring that thrived on scanning high-limit credit cards from well-heeled customers in some of New York's top steakhouses and using the stolen numbers to purchase millions of dollars' worth of luxury goods.

In two indictments encompassing 172 counts, authorities detailed the scheme, in which the defendants allegedly used high-tech "skimmers" -- hard to detect because they fit into the palm of one's hand -- to capture customers' credit card numbers at high-end restaurants in New York, Connecticut and New Jersey, including Smith & Wollensky's, the Capital Grille and others.

The numbers were then used to manufacture phony credit cards, complete with embossed numbers and the names of the customers whose cards were skimmed, investigators said.

An army of shoppers equipped with the cards -- and in some cases, matching fraudulent driver's licenses -- were sent to stores such as Jimmy Choo, Cartier and Neiman Marcus to purchase handbags, shoes and other items, according to the indictments. The items were resold for profit.

Search warrants executed Thursday at a storage unit in midtown Manhattan and other locations turned up more than $1 million worth of watches and more than $1.2 million in cash, among other items, authorities said.

The charges range from grand larceny to enterprise corruption, New York State's equivalent of racketeering. The alleged ringleader, Luis Damian Jacas, 41, faces more than 135 felony counts in all.

TARGETING THE 'BLACK CARD'

Manhattan District Attorney Cyrus Vance, who earlier this week unsealed an 82-count indictment against three men accused of planting skimmers on automated teller machines and using the stolen card information to make more than $285,000 in purchases, said the case highlights the pervasive dangers of identity theft for consumers.

"Every day, hard-working New Yorkers find themselves the victim of identity theft," he said at a press conference. "It can take years for those individuals to have their credit restored."

The 18-month investigation was conducted by the Secret Service, the New York Police Department and the Manhattan district attorney's office and included wiretapping phones, monitoring email accounts, analyzing financial records, and tailing shoppers, Vance said.

By targeting high-limit or unlimited American Express credit cards, including the famed "black card," the ring ensured that it could make purchases without fear it would trigger automatic red flags with American Express, New York Police Commissioner Raymond Kelly said.

(Reporting by Joseph Ax)

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