Four people with ties to Connecticut, Florida, Missouri and Iowa have been charged in an eight-count federal indictment after prosecutors said checks intended to pay a multinational corporation’s legitimate vendors were stolen, altered and deposited into accounts controlled by people involved in the scheme.
Cory L. Sims Jr. of Bridgeport, Connecticut; Dondre O. Daniels of Bridgeport and Tampa, Florida; Christian M. Hill of Kansas City, Missouri; and Makhia L. Duncan of Des Moines, Iowa, were charged in federal court in Kansas City, according to the U.S. Attorney’s Office for the Western District of Missouri.
The indictment was initially returned under seal and became public after Hill made an initial court appearance. The U.S. Attorney’s Office announced the case Oct. 5.
Checks Meant for Vendors Had Their Payee Names Replaced
According to the federal indictment described by prosecutors, the corporation issued checks to pay legitimate vendors, but the defendants unlawfully obtained some of those payments before the intended recipients received the money. The Justice Department did not publicly identify the multinational corporation whose checks were involved.
The intended payees’ names were allegedly removed from the checks and replaced with either the defendants’ names or, in at least one instance, the name of an identity-theft victim. Prosecutors say the altered checks were then deposited into accounts controlled by the defendants. The money was subsequently withdrawn or moved through additional transactions.
Sims and Daniels Allegedly Used Accounts in Different Names
The indictment alleges Sims and Daniels deposited multiple altered corporate checks into bank accounts opened either in Sims’ name or in the name of an identity-theft victim. Daniels allegedly used debit cards linked to those accounts to make ATM withdrawals in several cities.
Prosecutors say Sims and Daniels then moved fraud proceeds through cash withdrawals, account transfers, electronic transactions and payments to a business associated with Daniels.
Hill and Duncan Are Accused of Laundering Separate Corporate Checks
Hill is accused of obtaining another altered check issued by the corporation and depositing it into his personal bank account. According to the U.S. Attorney’s Office, Hill subsequently withdrew and laundered more than $45,000 in fraud proceeds.
The indictment alleges Duncan obtained a separate altered corporate check and deposited it into an account in Duncan’s name. Prosecutors say more than $34,000 was subsequently withdrawn and laundered through additional transactions.
The Eight-Count Indictment Assigns Different Charges to Each Defendant
The defendants are not all charged with the same offenses. Sims faces conspiracy to commit money laundering, while Daniels faces bank fraud, conspiracy to commit money laundering and aggravated identity theft. Hill faces bank fraud and two substantive money-laundering counts. Duncan faces bank fraud and one money-laundering count.
The U.S. Attorney’s Office said federal bank fraud carries a maximum penalty of 30 years in prison. Conspiracy to commit money laundering carries a maximum of 20 years, while the individual money-laundering offenses charged in the case carry maximum terms of 10 years.
Aggravated identity theft carries a mandatory two-year prison term that must run consecutively to any sentence imposed for the underlying felony. Those are statutory penalties upon conviction, not sentences imposed in this case.
Sims Remained at Large When Prosecutors Announced the Case
Hill had appeared in federal court by the time the indictment was unsealed, and prosecutors said Daniels and Duncan were subsequently taken into custody. Sims remained at large when the U.S. Attorney’s Office announced the case Oct. 5.
The indictment also contains a forfeiture allegation seeking proceeds prosecutors contend are traceable to the charged offenses. Assistant U.S. Attorney James Kirkpatrick is prosecuting the case, which was investigated by the FBI. The indictment contains allegations rather than findings of guilt. All four defendants are presumed innocent unless proven guilty in court.