- Key insight: Criminals exploited the banking system's "check float" period as a core part of the scheme.
- What's at stake: The scheme compromised the personal and financial security of individuals who now have ongoing fears about identity theft.
- Supporting data: Of the $1.2 million the criminals attempted to steal, banks only lost $22,000 to the scheme.
Overview bullets generated by AI with editorial review
A federal judge recently sentenced a Missouri man who orchestrated a check fraud operation using checks stolen directly from U.S. mail collection boxes and social media-recruited money mules to 42 months in federal prison.
The scheme involved washing, counterfeiting and depositing checks and had a total face value of $1.2 million. However, banks identified and rejected many of the fraudulent checks, limiting the damage to roughly $22,000 in total.
U.S. District Judge Catherine D. Perry on Friday imposed the 42-month sentence on Malik A. Jones, 28, of Berkeley, Missouri. The court also ordered Jones to pay $21,635.30 in restitution to victims, including financial institutions.
Jones had pleaded guilty to two charges in October 2024: bank fraud and aggravated identity theft.
As part of the guilty plea, the United States dismissed four other counts against Jones, including two additional counts of bank fraud, one count of possession of stolen mail matter and one additional count of aggravated identity theft.
Operation exploited mail, digital tools and the check float
From March 2022 until at least October 2023, Jones had been involved in "every step" of the fraudulent scheme, according to prosecutors. Jones orchestrated the acquisition of checks stolen from mailboxes and U.S. Postal Service collection boxes in and around St. Louis.
Jones obtained access to the mail by paying co-conspirators to use a stolen postal service key, known as an "arrow key," to steal mail. He also paid a postal service employee, Cambria M. Hopkins, for stolen mail containing checks.
Hopkins, 30, of Florissant, Missouri, also pleaded guilty and is scheduled for sentencing in December.
Once Jones obtained the checks, he altered them, changing the payable amount and making them payable to specific account holders. Jones also forged the payors' signatures on the altered checks or created counterfeit checks drawn on bank accounts from the stolen mail.
Jones used Instagram to recruit people willing to knowingly provide Jones with their debit cards, PINs and banking information. He would later split the proceeds of the scheme with these so-called money mules.
Jones deposited the forged and fraudulent checks into these mule accounts, allowing the financial institutions, including First Bank, Electro Savings Credit Union and Neighbors Credit Union, to "float" funds by making a portion or the full amount available before the checks cleared.
Jones withdrew the funds through ATMs and electronic transfers before the banks identified the checks as fraudulent.
Other financial institutions also suffered losses, including Bank of America, which sustained a total loss of $15,827.32 across multiple accounts, and First Bank, with a $5,807.98 loss.
Victims express fear and disruptions
The mail theft underpinning the scheme contributed significantly to a well-publicized problem, undermining public confidence in the U.S. postal system. Victims detailed the substantial personal and financial disruptions Jones' crimes caused in impact statements submitted to the court.
"Our time spent to straighten out the mess was stolen from our work and when we needed to be with our sick family member," one victim wrote. "The crimes also left us in great constant fear of further theft and other types of crimes against us by the thieves."
Another victim highlighted the constant vigilance required due to compromised personal information.
"Because these checks also contained the Social Security numbers of my wife and me, I remain concerned about identity theft," the person wrote. "This has caused me to lock down all my credit reports and look at each and every transaction that occurs on all accounts, credit card and bank. This is stressful."
Victims also noted a complete erosion of trust in postal services.
"When you broke into the mailbox at the United States Post Office and stole envelopes," one victim said, "I felt violated by your actions. You also have ruined the credibility of the United States Post Office to deliver mail."
For victims whose personal information was compromised, the sense of security vanished.
"I no longer feel safe in my own home and I question if my social number is secure," one victim wrote.
Melinda Huspen contributed reporting.
