Ricardo Castro Murillo, a 34-year-old Honduran national, has been sentenced to 37 months in prison for conspiracy to commit bank fraud. The sentencing was handed down by United States District Court Judge Philip P. Simon in Hammond, Indiana. In addition to the prison term, Castro Murillo will serve one year of supervised release and must pay $533,043 in restitution. Following his release from prison, he will be subject to removal proceedings due to his lack of legal status in the United States.
Court documents show that on January 11, 2023, Castro Murillo and co-conspirators used fake identification cards to cash 169 fraudulent paychecks totaling $233,569 at three branches of a bank located in the Northern District of Indiana. The checks were made to appear as if they were issued by a dairy farm company operating in that district.
Nearly six months later, on June 23, 2023, the group again used fake identification cards to cash 178 fraudulent paychecks worth $299,474 at five branches of the same bank and three check-cashing businesses in the Eastern District of Oklahoma. These checks were designed to look like they had been issued by a building materials supply company based in Oklahoma.
“Castro Murillo participated in a far-reaching conspiracy that caused major financial harm to community banks and small businesses across the United States. Due to the unwavering efforts and collaboration between federal, state, and local law enforcement, Castro Murillo was brought to justice for his role in this scheme,” said Acting United States Attorney M. Scott Proctor. “The sentence imposed by the court sends a message that there are real consequences for engaging in fraud, particularly in northwest Indiana.”
Matthew J. Scarpino, special agent in charge of Homeland Security Investigations (HSI) in Chicago stated: “The illicit actions of co-conspirators to commit bank fraud as they travel throughout the United States will not be tolerated. HSI will continue to partner with our fellow law enforcement agencies to disrupt these types of offenders and hold them accountable for their crimes.”
Sergeant Jeremy Piers from the Indiana State Police added: “Sophisticated fraud operations like this require investigative teamwork that spans state lines. From the first lead to the final arrest, our detectives, troopers, and support staff worked relentlessly alongside federal, state, and local partners to track the suspects’ movements, gather critical evidence, and bring this scheme to an end. This outcome reflects countless hours of coordination and determination, and it sends a clear message: when criminal activity crosses into Indiana, we will work tirelessly with our partners to protect our communities, our businesses, and our financial institutions.”
Co-conspirator Luis Banegas Rodriguez previously received a sentence of 27 months for his involvement.
The investigation involved multiple agencies including Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI), United States Secret Service (USSS), Indiana State Police (ISP), Benton County Sheriff’s Department (Indiana), Benton County Prosecutor’s Office (Indiana), Poteau Police Department (Oklahoma), Texas Department of Public Safety (DPS), Travis County Sheriff’s Office (Texas), and Houston Police Department (Texas). The prosecution was led by Assistant United States Attorney Steven J. Lupa from Northern District of Indiana along with Kara Traster and Jordan Howanitz from Eastern District of Oklahoma.
