Lowell man admits role in multi-million-dollar bank fraud scheme
One of his co-defendants,
Both Wainaina and Kolawole have pleaded guilty in federal court to conspiracy to commit bank fraud, bank fraud and conspiracy to commit money laundering.
They were arrested in July along with four others named in the affidavit, including
Prosecutors said the operation began no later than
Vernot and Wainaina recruited "imposters," prosecutors said, provided them with fake identification documents bearing victims' names and the imposters' photos and drove them to banks to withdraw large sums in the form of cashier's checks. Wainaina and Kolawole then deposited those checks into bank accounts they controlled and used the funds to purchase additional cashier's checks payable to Vernot.
Prosecutors said Vernot used some of the stolen funds to pay bank insiders who intentionally bypassed customer‑verification protocols to facilitate the scheme.
An affidavit filed in federal court describes how the group also compensated the imposters they recruited.
In one text exchange obtained by authorities, Okai told Vernot he would pay an imposter "so she stay happy" to keep her willing to make larger withdrawals, though she later backed away because she had not been paid, the affidavit states.
In another instance, Vernot prepared two envelopes of money for Okai — one for Okai and another for an imposter. According to the affidavit, "Vernot explained that the money for the imposter was 'not a lot but enough to make her get back to work.'"
Wainaina's attorney,
Kolawole's attorney,
"He made regrettable choices at his behest," Reilly added. "Nonetheless, he has accepted full and complete responsibility for his own actions, and expresses sincere remorse. He looks forward to the day when the victims of these crimes have been made whole, and to putting this chapter of life behind him so that he can move forward as a wiser, productive member of society."
Kolawole is scheduled to be sentenced
Vernot previously pleaded guilty in December and is scheduled to be sentenced on
The bank‑fraud charges are punishable by up to 30 years in prison and fines of up to
Foley's office noted in a press release that the investigation received valuable assistance from several police agencies, including the
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