South LA Resident Receives 87-Month Federal Prison Sentence for Leading $2.7 Million Bank Fraud Scheme
Los Angeles – Carlos Corona, a South Los Angeles resident, was sentenced to 87 months in federal prison for masterminding a large-scale bank fraud scheme that defrauded banks and credit unions out of over $2.7 million. The operation, which involved soliciting bank account holders through Instagram, relied on depositing stolen checks into the accounts of recruited accomplices. U.S. District Judge John F. Walter delivered the sentence, also ordering Corona to pay $2,722,632 in restitution.
Between October 2020 and August 2023, Corona, 37, led a conspiracy involving bank fraud and aggravated identity theft. The scheme’s foundation was the theft of checks from the U.S. mail, including checks taken from post office collection boxes. Using social media platforms like Instagram, Corona and his co-conspirators lured bank account holders with promises of a cut from the fraudulent deposits in exchange for access to their accounts.
Once Corona and his team secured account information, they deposited the stolen checks into the targeted accounts. To evade detection by the banks’ fraud systems, Corona specifically sought out accounts that had been active for a sufficient duration, enabling faster access to the illicitly obtained funds.
The stolen checks were either falsely endorsed with the original payee’s name or altered to reflect the bank account holder’s name. After depositing the funds, Corona and his co-conspirators swiftly withdrew cash, made electronic transfers, and executed debit card purchases. To cover up the fraud, they instructed the account holders to claim that their accounts had been compromised if banks inquired about the suspicious activity.
Legal Charges and Sentencing in Carlos Corona Bank Fraud Case
Conspiracy to Commit Bank Fraud: Under 18 U.S.C. § 1349, Corona admitted to orchestrating a conspiracy that involved recruiting accomplices via Instagram to use their bank accounts for depositing stolen checks. This charge highlights the illegal coordination among multiple parties to defraud financial institutions, which carries severe penalties, including extensive prison time and hefty fines.
Aggravated Identity Theft: Corona also pleaded guilty to Aggravated Identity Theft under 18 U.S.C. § 1028A. This charge specifically addresses his use of stolen identities to facilitate the fraudulent deposits. Aggravated Identity Theft imposes a mandatory two-year prison sentence that must be served consecutively with any other penalties, reflecting the seriousness of exploiting another person’s identity in furtherance of bank fraud.
The investigation into Carlos Corona’s elaborate fraud scheme uncovered a plot designed to defraud banks and credit unions out of up to $5.3 million. While the actual losses reached at least $2.7 million, the significant financial damage prompted a robust federal response. This extensive operation, which leveraged stolen checks and exploited social media for recruitment, led to 10 convictions, underscoring the success of federal law enforcement in dismantling the conspiracy.
These convictions are a testament to the thorough and coordinated efforts of prosecutors and federal agencies in combating financial crimes of this scale. It’s important to note that an indictment represents only the allegations against a defendant, and all individuals are presumed innocent until proven guilty in a court of law.
