DOJ: Four Charged in Multistate Bank Fraud and Money-Laundering Scheme

• The defendants allegedly deposited altered checks into accounts they controlled, withdrawing and laundering more than $45,000 and $34,000 in separate instances.
• Charges include bank fraud, conspiracy to commit money laundering, aggravated identity theft, and the indictment seeks forfeiture of the proceeds.

Four individuals from multiple states were charged in an eight-count federal indictment for their roles in a scheme involving stolen and altered checks from a multinational corporation. The indictment alleges they replaced payee names with their own or with identity-theft victims, then deposited and laundered the funds through various transactions.

The indictment details that Hill laundered more than $45,000 and Duncan laundered more than $34,000, while Sims and Daniels deposited multiple altered checks and conducted ATM withdrawals and electronic transactions. The charges include bank fraud, money laundering, conspiracy, and aggravated identity theft, with forfeiture of proceeds sought.

• $45,000 fraud proceeds laundered by Hill
• $34,000 fraud proceeds laundered by Duncan
• 30 years maximum penalty for bank fraud

• Review recent check deposits for alterations involving payee name changes, especially those linked to identity-theft victims as described in the DOJ indictment.
• Monitor for ATM withdrawals and electronic transactions from accounts opened in the names of Sims, Daniels, Hill, or Duncan, or identity-theft victims.
• Screen for transactions involving large withdrawals or transfers following deposits of checks issued by multinational corporations, as outlined in the indictment.

This case highlights the risks of check fraud and money laundering schemes that exploit weaknesses in payment and identity verification processes. Compliance officers must be vigilant for altered checks, especially those involving identity-theft victims, and monitor for suspicious patterns such as rapid withdrawals or transfers after deposits. The indictment underscores the importance of robust controls and timely detection to prevent financial institutions from being used to facilitate fraud and laundering activities, and to comply with regulatory expectations for reporting and investigation.