DOJ: Three Sentenced for Bank Fraud Conspiracy Involving Checks Stolen from the Mail

• The group intended to cause a loss of at least $581,123 by stealing checks from U.S. Postal Service collection boxes.
• Despite their efforts, the conspirators ultimately failed to make any money from the scheme.

Three men were sentenced to prison after conspiring to steal checks from U.S. Postal Service collection boxes in and around St. Louis and deposit them into fraudulently-opened bank accounts using false documents. The sentences ranged from 33 to 39 months, with the group admitting to intending to cause a loss of at least $581,123.

The conspirators used fraudulent paperwork to open or attempt to open accounts at multiple banks, depositing a $312,677 check at one location. Police recovered stolen checks, money orders, and fraudulent documents, but the group ultimately did not profit from the scheme.

• $581,123 intended loss from stolen checks
• $312,677 check deposited in fraudulent account
• 53 loose checks, money orders, and envelopes recovered

• Review recent account openings for fraudulent documents similar to those used by Douglas, Franco-Gonzalez, and Handford.
• Monitor for large check deposits, such as the $312,677 check, into new or suspicious business accounts.
• Flag and investigate attempts to open accounts by individuals posing as business owners with documents linked to mail theft typologies.

This case highlights the risks financial institutions face from organized groups using stolen checks and fraudulent documents to open unauthorized accounts. Compliance officers must remain vigilant for red flags such as large deposits into new accounts, suspicious identification documents, and patterns consistent with mail theft. The DOJ's prosecution demonstrates the importance of robust KYC procedures and collaboration with law enforcement to detect and prevent financial crimes that exploit both the postal system and banking sector.