POUGHKEEPSIE, N.Y. – Police last week arrested the alleged leader of ring that induced dozens of people to cash phony or counterfeit checks on their behalf.
Hayes Kanyike, 28, is accused of developing a scheme that defrauded local credit unions and banks and residents of about $130,000. He was arrested 3:05 p.m. Tuesday during an attempt to steal funds at the Hudson Valley FCU in Hyde Park, authorities said.
The scheme worked like this. A a man would approach residents, usually women, and provide a stolen or counterfeit check. He would ask them to deposit the check into their account and give various reasons why he could not cash it himself.
Two days later, the man would take the person back to the credit union and have them withdraw the money, usually around $4,000 to $5,000. He would then give them around $50 to $150, according to police.
The credit union would later contact the person who cashed the check, indicating that his or her account was overdrawn and the money needed to be repaid.
As a result, at least 26 of these people were arrested, police said.
