DOJ: New Jersey Woman Pleads Guilty to Bank Fraud Relating to Stolen U.S. Treasury Check

• Pettaway used stolen and fraudulent identities to open accounts and was arrested with a fake New York driver’s license and three debit cards.
• She faces up to 30 years in prison and is currently released on a $100,000 bond pending sentencing.

Madisyn Pettaway, age 31, pleaded guilty to bank fraud after attempting to deposit a stolen U.S. Treasury check for $410,085.48 at Charter Oak Federal Credit Union using a fraudulent New Jersey driver’s license and a stolen identity. The credit union did not accept the deposit, and Pettaway later opened another account with a different fraudulent identity.

She was arrested by East Lyme Police in July 2025, found with a fake New York driver’s license and three debit cards in the fraudulent name, and later charged federally. Pettaway is released on a $100,000 bond and faces sentencing on December 21, with a maximum penalty of 30 years in prison.

• $410,085.48 Amount of stolen U.S. Treasury check
• 30 years Maximum term of imprisonment
• $100,000 Bond amount for Pettaway's release

• Review account opening procedures for detection of fraudulent driver’s licenses and stolen identities, as used by Madisyn Pettaway at Charter Oak Federal Credit Union.
• Enhance monitoring for attempts to deposit large U.S. Treasury checks, specifically those similar to the $410,085.48 check in this case.
• Coordinate with law enforcement and the U.S. Treasury Inspector General for Tax Administration when fraudulent federal benefit checks are suspected.

This case highlights the ongoing risks of identity theft and check fraud targeting financial institutions, particularly involving federal benefit payments. Compliance officers must ensure robust identity verification and fraud detection controls are in place to prevent similar schemes. The involvement of multiple law enforcement agencies and the DOJ’s new National Fraud Enforcement Division underscores the heightened regulatory and enforcement focus on fraud against government programs, making it critical for institutions to promptly report and respond to suspicious activity involving government checks.