Federal prosecutors said a six-person fraud ring in New York State allegedly stole more than $1.3 million from banks and credit unions in less than a year using stolen federal tax refund checks and fake identification documents.
The U.S. Attorney's Office in Buffalo announced earlier this month that Jeffrey Fleischer, 36, Crystal Velez, 36, Blaine Webster, 40, Reginald Seals, 47, Johnny Ray McDuffie, 36, and Anthony Zorilla, 28, have been indicted on multiple felony counts of conspiracy to commit bank fraud and aggravated identity theft.
All six defendants, who are Buffalo residents, pleaded not guilty to the charges in federal court.
The fraud ring members allegedly obtained stolen U.S. Treasury tax refund checks payable to other people. Prosecutors did not say how the checks were obtained.
The checks were for tens of thousands or hundreds of thousands of dollars, and some of the ID theft victims were business owners.
Prosecutors said members of the fraud ring allegedly used the identities of more than 12 victims from New York, Florida, New Jersey, Virginia, Connecticut and Oregon.
The names on those checks were used to produce fake identification documents to open bank accounts at eight credit unions and two banks.
Accounts were opened at the $91.2 million Good Neighbors Credit Union in Depew, N.Y., the $518 million ServU Federal Credit Union in Painted Post, N.Y., the $44.6 million Sweet Home Federal Credit Union in Amherst, N.Y., the $813 million Erie Federal Credit Union in Erie, Pa., the $2.7 billion Corning Federal Credit Union in Corning, N.Y., the $68.5 million Greater Together Federal Credit Union in Niagara Falls, N.Y. (formerly Greater Niagara Federal Credit Union), the $725 million Cornerstone Community Federal Credit Union in Lockport, N.Y., the $433 million High Point Federal Credit Union in Olean, N.Y., Northwest Bank in Warren, Pa., and Evans Bank in Hamburg, N.Y.
After the checks were deposited, members of the fraud ring withdrew or transferred the funds.
The fraud scheme began in August 2023 and ended in May 2024.
READ MORE: Financial Fraud Scheme Indictment.
Peter Strozniak can be reached at peter.strozniak@arc-network.com.
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