Two Omaha men federally indicted in bank, securities fraud scheme
Two
Federal prosecutors on Friday unsealed an eight-count indictment against
The federal indictment is in addition to state charges filed last year against Carter and Washington alleging forgery and criminal conspiracy. The time frame listed in the indictment indicates that the men allegedly continued to perpetuate or aid in the fraud while out on bail awaiting trial in
State charges against Carter and Washington will likely be dismissed later this week,
"This is not state court,"
According to court documents, communications found on seized devices indicated that Washington, Carter and other associates would place advertisements on social media offering
Members of the alleged conspiracy would deposit forged business checks into the accounts and remove all of the funds via gift card purchases, ATM withdrawals and electronic transfers before the check could be flagged as fraudulent. Electronic evidence suggests that "several dozen" people were involved in the scheme.
The
FNBO's app allows account holders to take photos of checks to deposit money electronically. According to the affidavit, the app captures the IP address and physical GPS coordinates of each device used to upload photos of a check. The GPS coordinates captured when the fraudulent checks were deposited, leading investigators to a northwest
A search warrant was served on the home in
Carter was arrested after the execution of the search warrant and was charged with forgery and criminal conspiracy. He posted bail and was released shortly after his arrest.
Carter's arrest did not mark the end of the investigation. In
ATM cameras captured photos of the man who deposited the checks, and deputies identified him as Washington, according to court documents. A search warrant executed at Washington's home did not locate any check forgery equipment, leading deputies to believe that someone else was supplying Washington with checks and directing him to deposit them.
Washington was arrested in
Washington was the first to appear in federal court last week, where he entered not guilty pleas on all counts and was ordered by Bazis to be released ahead of trial. Carter also pleaded not guilty during his initial appearance Tuesday and was ordered to be released from custody.
Both men face decades in prison if convicted on any of the eight charges. They are both named in each count of the indictment, which includes one count of conspiracy, five counts of bank fraud and two counts of possessing a counterfeit security. The conspiracy and bank fraud charges each carry a maximum sentence of 30 years in prison and a
Kleine said the
ICYMI: Chairing Personnel Subcommittee Hearing, Warren Calls Out DoD Losing Billions to Contractor and Health Care Price Gouging
Joe Lewis arrest: shares, insider trading and which Argentine friends made a lot of money in the stock market?
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News