SYRACUSE, N.Y. — Two men have been charged as part of a check-cashing ring that allegedly stole more than $100,000, with credit union members among the victims.
Kevin Lee, 26, of Clay, N.Y., and Daniel Green, 20, of Syracuse, N.Y., have been arraigned on a 19-count indictment accusing them of issuing more than $100,000 in fraudulent checks written in the name of a fictitious business, according to Attorney General Eric Schneiderman.
Schneiderman alleged that Lee, who also goes by the name Kev Escobar, and Green, who is also known as Lance Gambino, convinced various people, many of whom were contacted over Facebook and other social media, to deposit forged checks into their personal checking accounts. They then drained the checking accounts before the checks were returned and the financial institutions discovered them to be worthless, he said.
"These defendants allegedly attempted to line their own pockets by preying on vulnerable New Yorkers who were looking for an extra financial boost," said Schneiderman in a statement. "My office has zero tolerance for those who commit identity theft and seek to exploit local financial institutions that ordinary consumers rely on for stability."
According to prosecutors, the scam worked this way: Lee created fictitious bank accounts in the name of Jones Maintenance, a fictitious business in which Lee claimed to have an interest. Then, he and Green targeted numerous people whom prosecutors called "financially vulnerable,” including college students, young single parents and other indigent, disadvantaged and unwary young adults, to whom they issued checks in the name of the fictitious company.
In exchange for depositing the checks in their accounts, the account owners were promised a portion of the check as a fee, Schneiderman’s office said. After the checks were deposited, Lee and Green withdrew the money from the victims' accounts before the financial institutions determined that the checks were from a fake company.
Prosecutors said that in some instances, Lee and Green assumed the identities of the account holders, accessing their financial accounts and withdrew funds via ATMs using personal information the account holders had been required to provide for "asserted security purposes.”
The financial institutions compensated the account holders for the phony checks and fraudulently withdrawn funds, Schneiderman said.
The institutions involved included Money Federal Credit Union, Empower Federal Credit Union, SECNY Federal Credit Union, GPO Federal Credit Union, Summit Federal Credit Union and Capital Communications Federal Credit Union, according to authorities.
Lee and Green have been charged in Onondaga County Supreme Court with felony charges that include grand larceny, forgery and identity theft. If convicted of the charges, they would face a maximum of 10 to 20 years in state prison, Schneiderman said.
Lee is being held without bail, and Green is being held on $150,000 bond or $75,000 cash bail.