Three individuals identified as leaders of a national bank fraud and money laundering operation have been sentenced to federal prison, totaling 421 months combined. Thaddeus Jerome Lee and Johnnie Lee Thomas, both from Arizona, along with Latroy L. Currie from Indiana, led schemes that stretched across the United States, including in Iowa.
Court documents show that over two and a half years, the group attempted to deposit at least $15 million in stolen checks at financial institutions nationwide. They successfully obtained approximately $2.9 million through fraudulent means. The operation involved recruiting dozens of people to participate in bank fraud and money laundering activities. The conspirators created fake business entities and supervised co-conspirators who opened fraudulent accounts to deposit stolen checks.
The three leaders laundered the proceeds by withdrawing funds from these accounts and distributing them among participants in the scheme. Sentences handed down were 151 months for Lee, 135 months for Currie, and 135 months for Thomas. After their prison terms, Lee and Currie will serve five years of supervised release; Thomas will serve three years. Federal sentences do not allow parole.
In addition to the main defendants, eleven other co-conspirators received sentences ranging from four months to 384 months in prison for their roles in the conspiracy. Four additional individuals are awaiting sentencing.
“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 these results following an investigation by multiple agencies including IRS Criminal Investigations Division, FBI, Postal Inspection Service, Treasury Inspector General for Tax Administration, Bureau of Alcohol Tobacco Firearms (ATF), Homeland Security Investigations (HSI), Secret Service, as well as state and local law enforcement agencies.
Assistant United States Attorneys Joseph Lubben, Kristin Herrera, and former Assistant U.S. Attorney Kyle Essley prosecuted this case.
