Nine men have been charged in a wide-ranging bank fraud and identity theft scheme that affected multiple states, including Massachusetts.

The defendants, who were all from Florida or New York, were charged with conspiracy to commit bank fraud and aggravated identity theft, according to a statement from the U.S. attorney’s office for the Northern District of New York.

According to the indictment, the defendants were part of a fraud scheme known as a “Felony Lane Gang.” In this type of scheme, conspiracy members use stolen identification from one victim to conduct fraudulent transactions using checks and credit cards stolen from another victim.

This identity theft ring traveled across the country breaking into cars, according to the U.S. attorney’s statement, often targeting those parked by women at health and fitness centers, day cares, outdoor recreational parks and dog parks.

After committing “smash-and-grab” vehicle thefts, members of the conspiracy allegedly stole debit cards, credit cards, check books and photo identifications, which they used to commit bank fraud, sometimes years later.

“The leaders of the scheme recruited women, whom they often referred to as ‘faces,’ to impersonate the smash-and-grab victims in drive-through bank lanes,” the U.S. attorney’s office said. “The recruited check cashers were almost always suffering from an addiction to a controlled substance and were provided payment at least partially in narcotics.”

The scheme involved more than 700 smash-and-grab thefts and approximately 1,000 fraudulent bank transactions across the country, with losses exceeding $1.5 million, according to the statement.

The Massachusetts State Police assisted federal and New York authorities in the investigation, along with police departments in Auburn, Easthampton, Salisbury, Tewksbury and Wakefield. Several police departments in Connecticut, Maine and New Hampshire also took part in the investigation.

If convicted, the defendants each face up to 30 years in prison and a mandatory minimum sentence of 2 years on each aggravated identity theft count.

Defendant Terrell McDonald was arrested in Troy; Joshua Mallory, Tyrone Parker, Cedric Lynch, and Gary Grier were arrested in Florida; Randall Taylor was arrested in Utah; and Tyrone Parker Jr. was arrested in Georgia.  Keyshawn Arnold was in New York State custody on unrelated state charges and will come into federal custody at a later date, according to the statement.

Nine Men Charged in Multistate Bank Fraud Scheme

by Banker & Tradesman time to read: 1 min
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