Three individuals identified as leaders of a large-scale bank fraud and money laundering operation have been sentenced to federal prison, following convictions for their roles in a scheme that spanned multiple states. Thaddeus Jerome Lee, Latroy L. Currie, and Johnnie Lee Thomas were sentenced to a combined 421 months in prison after being found guilty of organizing conspiracies that targeted financial institutions across the United States, including Iowa.
Court documents show that over approximately two and a half years, the group attempted to deposit at least $15 million in stolen checks at banks nationwide and succeeded in obtaining at least $2.9 million through fraudulent means. The operation involved creating fake business entities, recruiting dozens of accomplices, and opening fraudulent checking accounts to facilitate the deposit and withdrawal of stolen funds.
Lee and Thomas resided in Arizona while Currie lived in Indiana. Each played a central role by supervising co-conspirators who carried out transactions at banks and credit unions across several states. After withdrawing funds from fraudulently obtained accounts, they distributed proceeds among themselves and other participants.
Sentencing details indicate that Lee received 151 months' imprisonment; Currie was sentenced to 135 months; and Thomas also received 135 months. Upon release from prison, Lee and Currie will serve five-year terms of supervised release while Thomas will serve three years. Federal law does not allow parole.
Eleven additional co-conspirators have also been sentenced on related charges with prison terms ranging from four months to 384 months. Four more individuals are awaiting sentencing for their involvement in the conspiracy.
“A combined total of 421 months in prison for the leaders of this check fraud scheme should send a message about the seriousness of the crime,” said Special Agent in Charge William Steenson of IRS Criminal Investigation’s St. Louis Field Office. “Stealing checks, money laundering, and bank fraud…these are not victimless crimes. The sentences imposed are the result of IRS-CI’s commitment to identifying and investigating check fraud and working with other federal agencies to ensure the guilty are held accountable.”
The FBI commented: “These defendants orchestrated a sophisticated illegal scheme to defraud businesses and our banking systems. This kind of criminal activity erodes public trust and undermines our nation’s economic security. The FBI will continue to work with our partners to aggressively investigate and hold accountable criminals who use deception and dishonesty to steal money from innocent victims and businesses. Financial fraud is not a victimless crime.”
United States Attorney Richard D. Westphal for the Southern District of Iowa announced the sentences following an investigation led by IRS Criminal Investigations Division along with assistance from several federal agencies including the Federal Bureau of Investigation, Postal Inspection Service, Treasury Inspector General for Tax Administration, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Homeland Security Investigations (HSI), Secret Service, as well as state and local authorities.
Prosecution was handled by Assistant United States Attorneys Joseph Lubben, Kristin Herrera, and former AUSA Kyle Essley.
