MINNEAPOLIS – As many as 100 individuals are expected to be charged in a broad identity theft ring that drained more than $2 million from credit unions and banks in 14 states.
Participants allegedly stole drivers’ licenses and checkbooks they used to produce counterfeit checks that were drawn on more than two dozen institutions, including Affinity Plus CU, HealthEast Employees CU, U.S. Bank, Wells Fargo and others, according to court records.
Identity documents were often stolen through burglaries or smash-and-grab thefts of purses from cars, the records show. In some cases the conspirators deposited counterfeit checks with the victims' account numbers on them into another victim's account, and then withdrew cash. The checks would clear, and the victims were unaware of the crime until they noticed the unusual account activity.
One accomplice, Majorie Neely, 50, of Minneapolis who pleaded guilty Tuesday to bank fraud and aggravated identity theft, described how the scheme worked. A counterfeit check for $6,835 was drawn out of a victim's account and deposited into another victim's account, she said. Then, $5,000 was withdrawn and distributed among people involved in the scheme, she said. She helped steal $23,000 this way, she testified.
The multi-state scheme began to unfold last May when one of the alleged ringleaders was charged in Minnesota with passing counterfeit checks in Iowa as part of a wider conspiracy. The suspect has since pleaded guilty in September to money laundering and aggravated identity theft and agreed to testify in the case.
Among those expected to be charged are employees at the credit unions and banks who were paid participants in the scheme, authorities said.
