18 indicted in nationwide bank fraud scheme that took $2.1M

A federal grand jury in Des Moines has indicted 18 individuals in a nationwide bank fraud scheme involving stolen checks and fake employer identification numbers, resulting in a $2.1 million loss to 12 businesses and 14 financial institutions that do business in Iowa.

The 18 people who face bank fraud, money laundering and conspiracy charges were involved in nationwide scheme to defraud financial institutions by withdrawing money from stolen business checks, according to the indictment filed in U.S. District Court for the Southern District of Iowa.

The defendants, along with others across the country, first obtained stolen checks from uncharged co-conspirators. The they registered “sham” businesses with the IRS and state government agencies, including the Iowa Secretary of State, with a name identical to or similar to the legitimate recipients of the checks, the indictment states.

The defendants would obtain registration documents and tax employer identification numbers and open or attempt to open accounts at banks and credit unions under the fake businesses with the intent to deposit the stolen checks.

If the deposit went through, the defendants withdrew large amounts of cash from the accounts or obtained cashier’s or official checks from the accounts, according to the indictment. The defendants would then distribute the money among co-conspirators.

Many times, the defendants obtained cashier’s or official checks for the fake businesses with the intent to launder the stolen check proceeds.

According to the indictment, at least 12 businesses and 14 financial institution were impacted. The defendants and their co-conspirators attempted to deposit about $10 million worth of stolen checks into fraudulent accounts and were able to obtain at least $2.1 million in proceeds.

The businesses were not named in the indictment — only identified by initials — but the documents stated those victims were postal customers who conduct business in Georgia, Illinois, Ohio, Texas, California, New York, Alabama, Idaho and Quebec, Canada.

The financial institutions used by defendants in the scheme that are doing business in Iowa are: Bank of America; BMO Bank; First Central State Bank; Great Southern Bank; JPMorgan Chase Bank; PNC Bank; and U.S. Bank. All insured by the Federal Deposit Insurance Corporation.

The credit unions used by defendants in Iowa are: Ascentra Credit Union; Collins Community Credit Union; Community Choice Credit Union; Financial Plus Credit Union; Greater Iowa Credit Union; GreenState Credit Union; and Veridian Credit Union.

Those indicted are: Thaddeus Jerome Lee; Johnnie Lee Thomas; Malik K. Marshall; Latroy L. Currie; Tiarra Lenae Jones; Stephan Rashad Haley; Lovely Hall, Kira Ashleigh Johnson; Carnell A. Thomas Jr.; Reanna R. Haymon; Somore Renee Hill; Shapara Montee Hunter; Toni Lynette Renroe; Erin R. Smith; Mario Ricardo Smith; Jazlinn Chaute Tapp; and John Ivory Winston Jr.

The news release from the U.S. Attorney’s Office on the indictment doesn’t include ages or say where the defendants live.

If convicted, they each face a maximum sentence of 30 years in federal prison on charges of bank fraud or bank fraud conspiracy and 10 years on charges of money laundering or money laundering conspiracy. There are 50 charges included in the 20-page indictment.

The IRS Criminal Investigation and the FBI are investigating the case with assistance from the Postal Inspection Service, Treasury Inspector General for Tax Administration, Bureau of Alcohol, Tobacco and Firearms and the Secret Service, as well as assistance from numerous state and local agencies. Assistant U.S. attorneys Kyle Essley, Kristin Herrera and Joseph Lubben are prosecuting the case.

Comments: (319) 398-8318; trish.mehaffey@thegazette.com