An aspiring Southern California rapper has been arrested in a federal check fraud case after prosecutors say he and two other defendants possessed more than $8.1 million in stolen checks and tried to turn them into cash through banks and credit unions.
Ada William Obayuwana, 31, who performs as ColdheartedAC and AC, was arrested Wednesday and made his first appearance in federal court in Los Angeles. He lives in Quartz Hill.
The case involves more than 50 stolen U.S. Treasury checks containing tax refunds, veterans benefits and Social Security payments, along with hundreds of additional checks belonging to individuals and businesses.
Prosecutors say the defendants forged endorsements, altered names and addresses and opened bank accounts designed to receive fraudulently transferred money. Obayuwana alone allegedly possessed more than 100 stolen or fraudulent checks worth over $6.1 million in his car, according to the U.S. Attorney’s Office for the Central District of California.
More Than $6.1 Million in Checks Were in His Car
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Prosecutors say Obayuwana possessed the checks in his vehicle in Oceanside in December 2023. The more than 100 checks had a combined face value exceeding $6.1 million. Among them were 48 stolen U.S. Treasury checks worth approximately $2,555,417. Those government checks represented tax refunds, veterans benefits and Social Security Administration benefits.
Eight Checks Had Already Been Cashed for About $1.7 Million
The face value of the checks is different from the amount prosecutors say was successfully obtained. Of the checks Obayuwana allegedly possessed, eight had been successfully cashed for a combined approximately $1,701,507.
Federal authorities separately accuse him of attempting to cash at least three Treasury tax refund checks totaling approximately $382,109 between April 2022 and December 2023. One of those checks was successfully cashed, after which approximately $229,109 was withdrawn, according to the indictment.
The Scheme Used Altered Checks, Stolen Identities and New Bank Accounts
The indictment describes a process that went beyond simply presenting stolen checks at teller windows. Prosecutors say participants forged endorsements on Treasury checks or altered names and addresses so the payments could be redirected. Bank accounts were allegedly opened to receive fraudulently transferred funds.
In some instances, business documents were created to mimic the names and identifying information of legitimate victims. Stolen checks were then deposited or presented at banks and credit unions in Los Angeles, Orange and San Diego counties. Prosecutors also accuse Obayuwana and co-defendant Albert Tai Vu of using stolen identities to further the bank fraud.
Two Other Defendants Are Charged
Obayuwana is charged alongside Albert Tai Vu, 28, of Westminster, and Cassandra Marie Murrillo, 31, of San Diego, according to KTLA. Prosecutors say Vu attempted to cash at least six Treasury checks with a combined value of $2,151,391. Two tax refund checks totaling $772,159 were successfully cashed. Murrillo is accused of attempting to cash at least two checks worth $60,193 and successfully cashing one worth $31,405.
One $250,000 Payment Helped Purchase a Range Rover
Prosecutors also describe how some alleged proceeds were moved after reaching financial accounts. In April 2023, Vu allegedly obtained two cashier’s checks for $250,000 each using money from a None to Lose LLC account that prosecutors say was derived from unlawful activity.
The first cashier’s check was paid to an LLC belonging to another alleged participant, and the money was used to purchase a Range Rover. The second $250,000 cashier’s check was made payable to Murrillo.
The Three Defendants Face a 25-Count Federal Indictment
All three defendants are charged in nine bank fraud counts. Obayuwana additionally faces three counts of delivering stolen Treasury checks and one count of aggravated identity theft. Vu faces five counts of delivering stolen Treasury checks, four money laundering counts and two aggravated identity theft counts. Murrillo faces one additional count of delivering a stolen Treasury check.
The Justice Department said Obayuwana remained in federal custody when it announced the indictment Aug. 28. Vu was arrested Aug. 27, while prosecutors said Murrillo was expected to surrender to federal authorities Sept. 1.
If convicted, the defendants face statutory maximum penalties of up to 30 years in federal prison for each bank fraud count and up to 10 years for each stolen Treasury check or money laundering count. Aggravated identity theft carries a mandatory consecutive two-year prison term for each count.
The Treasury Inspector General for Tax Administration, IRS Criminal Investigation and the U.S. Postal Inspection Service are investigating the case.
A Missing Government or Business Check Should Be Investigated Quickly
The U.S. Treasury’s Bureau of the Fiscal Service instructs recipients of lost, stolen or misdirected Treasury checks to contact the federal agency that issued the payment. The issuing agency can begin the claims process and determine whether the original check was negotiated.
Financial institutions have another verification tool. Treasury operates the Treasury Check Verification System, which allows banks and other qualifying institutions to compare information on a Treasury check with government issuance records. Treasury cautions that the system is one fraud-detection tool and should be used alongside examination of a check’s security features.
Businesses that issue significant numbers of paper checks can ask their bank about Positive Pay or similar fraud-prevention services. These systems compare checks presented for payment against records supplied by the business and flag discrepancies before questionable items are paid.
The U.S. Postal Inspection Service also recommends regularly reviewing account activity and images of paid checks so altered payees or suspicious endorsements can be detected quickly.
If a stolen or altered check is discovered, businesses and individuals should contact their financial institution immediately and preserve copies of the check, account records and transaction details. When mail theft is suspected, the incident can also be reported to the Postal Inspection Service at 1-877-876-2455 or through its online reporting system.