LOS ANGELES
A South Los Angeles man was sentenced Monday to seven years and three months in federal prison for leading a conspiracy that defrauded banks and credit unions out of at least $2.7 million by depositing checks stolen from the mail into bank accounts belonging to accomplices he recruited via Instagram, officials stated.
U.S. District Judge John F. Walter sentenced Carlos Corona, 37, and also ordered him to pay $2.7 million in restitution.
Corona pleaded guilty on May 1 to one count of conspiracy to commit bank fraud and one count of aggravated identity theft, according to authorities.
From October 2020 to August 2023, officials stated
that Corona and his co-conspirators orchestrated an elaborate bank fraud scheme involving third-party bank accounts and stolen checks.
Some conspirators stole checks from the U.S. mail stream, including from mail collection boxes outside post offices.
Once they had the stolen checks, the conspirators, including Corona, solicited bank account holders through social media, promising them a share of any fraudulent funds deposited into their accounts in exchange for their debit cards and bank account information.
To bypass fraud protections at banks and credit unions, Corona and his accomplices specifically sought bank accounts that had been open for a certain period, allowing quicker access to the stolen funds.
Bank account holders, responding to the social media advertisements, provided the conspirators with the requested information, including account numbers, PINs, debit cards, and online banking login details.
Corona and his co-conspirators exchanged bank account information among themselves and deposited the stolen checks into these accounts. In most cases, the checks were falsely endorsed in the original payee’s name. Sometimes, the checks were washed or altered to match the account holder’s name.
The conspirators then swiftly depleted the fraudulently deposited funds by making cash withdrawals, electronic transfers, and debit card purchases.
To cover their tracks, they instructed the account holders to claim that their accounts had been compromised if contacted by the banks or credit unions about the fraudulent deposits.
Throughout the scheme, Corona intended to cause banks and credit unions at least $5.3 million in losses, which ultimately resulted in actual losses of at least $2.7 million.
Prosecutors have secured 10 convictions in this case
The U.S. Postal Inspection Service and IRS Criminal Investigation investigated this matter.
Assistant U.S. Attorneys Sarah E. Spielberger and Alexandra Michael, both of the General Crimes Section, prosecuted this case.