BUFFALO, N.Y.—Federal prosecutors in New York have charged six people in what authorities allege was a nationwide fraud scheme that used stolen federal tax refund checks and fraudulent identification documents to steal more than $1.3 million from eight credit unions and a number of banks.
According to a statement from the U.S. Attorney’s Office for the Western District of New York, a federal grand jury returned an indictment charging Jeffrey Fleischer, Crystal Velez, Blaine Webster, Reginald Seals, Johnny Ray McDuffie and Anthony Zorilla with conspiracy to commit bank fraud and aggravated identity theft. Prosecutors said the alleged scheme operated from approximately August 2023 through May 2024.
The U.S. Attorney’s Office alleged the defendants obtained stolen U.S. Treasury tax refund checks issued to other individuals and then created fraudulent identification documents to impersonate those taxpayers. Prosecutors said the defendants allegedly used the false identities to open accounts at financial institutions, deposit the refund checks and then withdraw the funds for personal use.
Targeted FIs Across Multiple States
According to prosecutors, the alleged fraud targeted a number of financial institutions across New York and Pennsylvania, including multiple credit unions.
The U.S. Attorney’s Office said institutions identified in the indictment included Good Neighbors Credit Union, ServU Credit Union, Sweet Home Federal Credit Union, Erie Federal Credit Union, Corning Credit Union, Greater Niagara Federal Credit Union, Cornerstone Community Federal Credit Union and High Point Federal Credit Union, in addition to several banks.
Prosecutors alleged the defendants stole the identities of more than a dozen victims located in New York, Florida, New Jersey, Virginia, Connecticut and Oregon.
Potential Penalties
According to the U.S. Attorney’s Office, conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a fine of up to $1 million, while aggravated identity theft carries a mandatory minimum sentence of two years that must be served consecutively to any other sentence imposed. The charges are allegations, and the defendants are presumed innocent unless and until proven guilty in court.
