Eighteen individuals indicted on federal bank fraud and money laundering charges

Date: Sept. 9, 2024

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Des Moines, IA - A federal grand jury in Des Moines returned an indictment charging 18 individuals with offenses related to bank fraud, money laundering, and conspiracy.

As alleged in the indictment, defendants orchestrated a nationwide scheme to defraud financial institutions and draw funds from stolen business checks. Defendants, located across the country, first obtained the stolen checks from uncharged co-conspirators. They then registered sham entities with the IRS and state government agencies-including the Iowa Secretary of State-with names which were identical or similar to the legitimate recipients of the checks. After obtaining registration documents and IRS employer identification numbers, defendants opened or attempted to open accounts at banks and credit unions in the names of the sham entities, intending to deposit the stolen checks. While attempting to open the accounts, defendants made material misrepresentations to or concealed material facts from the banks and credit unions.

The indictment alleges that once defendants were able to open the accounts for the sham entities, they deposited or attempted to deposit the stolen checks in the accounts. If the deposit was successful, defendants withdrew large amounts of cash from the accounts and/or obtained cashier's or official checks from the accounts. Defendants distributed the proceeds among their co-conspirators. Oftentimes, defendants obtained cashier's or official checks written to sham entities that were created for the purpose of laundering stolen check proceeds. Defendants used the money obtained from the stolen business checks for their personal benefit and purposes.

The indictment alleges the defendants' conduct affected at least 12 business victims and at least 14 financial institution victims. Defendants and their co-conspirators attempted to deposit at least $10 million worth of stolen checks into fraudulent accounts and were able to obtain at least $2.1 million in proceeds from their criminal conduct.

If convicted, defendants face a maximum penalty of thirty years in prison on counts alleging bank fraud or bank fraud conspiracy and ten years in prison on counts alleging money laundering or money laundering conspiracy. The indictment may be viewed online PDF.

United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. IRS Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation are investigating the case with assistance from the Postal Inspection Service, Treasury Inspector General for Tax Administration, Bureau of Alcohol, Tobacco, and Firearms, and Secret Service, as well as with assistance from numerous state and local agencies. Assistant United States Attorneys Kyle Essley, Kristin Herrera, and Joseph Lubben are prosecuting the case.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

IRS-CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.