BUFFALO, N.Y.—Federal prosecutors in New York have charged six people in what authorities allege was a nationwide fraud scheme that stole more than $1.3 million from banks and credit unions using stolen federal tax refund checks and fake identification documents.
According to the U.S. Attorney’s Office for the Western District of New York, a federal grand jury indicted Jeffrey Fleischer, Crystal Velez, Blaine Webster, Reginald Seals, Johnny Ray McDuffie and Anthony Zorilla on charges including conspiracy to commit bank fraud and aggravated identity theft. Prosecutors said the alleged scheme operated between August 2023 and May 2024.
Federal authorities allege the group obtained stolen U.S. Treasury tax refund checks payable to other individuals, then used fraudulent identification documents to open bank accounts in the victims’ names before depositing the checks and withdrawing the funds for their own use.
The indictment said accounts were opened at multiple financial institutions, including 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, as well as several banks across New York and Pennsylvania.
Prosecutors said the defendants allegedly stole the identities of more than a dozen victims living in New York, Florida, New Jersey, Virginia, Connecticut and Oregon. The charges carry penalties ranging from a mandatory minimum of two years in prison for aggravated identity theft to as much as 30 years for conspiracy to commit bank fraud.
According to the indictment, the credit unions allegedly victimized in the scheme included:
- Good Neighbors Credit Union — Buffalo, N.Y.
- ServU Credit Union — Rome, N.Y.
- Sweet Home Federal Credit Union — Amherst, N.Y.
- Erie Federal Credit Union — Erie, Pa.
- Corning Credit Union — Corning, N.Y.
- Greater Niagara Federal Credit Union — North Tonawanda, N.Y.
- Cornerstone Community Federal Credit Union — Lockport, N.Y.
- High Point Federal Credit Union — Wellsville, N.Y.