Fraudster opens Sham Businesses to Defraud Banks $250,000

September 27, 2021 - Newark, NJ

A fraudster admitted his role in a scheme to defraud banks of more than $1 million using stolen and counterfeited checks and stolen identities. He used stolen identities, which included Social Security numbers belonging to minors, to create sham businesses. The fraudster and his conspirators opened bank accounts for the sham businesses and deposited stolen or counterfeited checks into the accounts and attempted to withdraw or transfer the funds before the banks could detect the fraud. 

Bank Loss: Approximately $1 million in fraudulently obtained checks were deposited into the fraudulent business bank accounts, resulting in at least $250,000 in losses to the various banks.