Six Individuals Indicted in Alleged $80 Million Government Check Fraud Scheme

Investigators claim that members of the group openly discussed their fraudulent activities, referencing a document referred to as the “Fraud Bible."

Six individuals have been charged in connection with an alleged scheme to fraudulently obtain government-issued checks and launder the proceeds, according to an indictment unsealed by the U.S. Attorney’s Office for the Southern District of New York. Authorities claim the defendants attempted to steal approximately $80 million, successfully depositing around $50 million into accounts linked to fraudulent businesses and stolen or fake identities.

The defendants, identified as Shan Anand, Nosakhare Nobore, Nicholas Pappas, Leonard Ujkic, Solomon Aluko, and Jorge Gonzalez, are accused of using falsified or stolen identity information to open bank accounts and deposit fraudulently obtained checks, including U.S. Treasury payments intended for COVID-19 relief programs. Some of the funds allegedly stemmed from fraudulent claims related to the Employee Retention Credit and Qualified Sick Leave Wages programs, which were designed to assist businesses affected by the pandemic.

According to the indictment, some of the checks involved were also linked to tax refunds and government assistance programs, including the Department of Veterans Affairs and the Social Security Administration. Authorities allege that some checks were stolen from the mail or forged before being deposited. The funds were then withdrawn in cash or transferred to other accounts controlled by the defendants.

Investigators claim that members of the group openly discussed their fraudulent activities, referencing a document referred to as the “Fraud Bible,” which contained instructions for committing various forms of financial fraud. Additionally, some members reportedly wore clothing bearing the phrase “Bag Hunter” alongside a logo depicting a sack of money, allegedly in reference to their activities.

The charges against the defendants include conspiracy to commit wire fraud and bank fraud, conspiracy to commit money laundering, conspiracy to defraud the government, and aggravated identity theft. If convicted, the individuals face significant prison sentences, with some charges carrying a maximum penalty of 30 years. Sentencing will ultimately be determined by a judge.

Authorities involved in the investigation include the Federal Bureau of Investigation (FBI), the Internal Revenue Service Criminal Investigations division (IRS-CI), the U.S. Postal Inspection Service, and the New York City Police Department. The case is being prosecuted by the U.S. Attorney’s Office’s Complex Frauds and Cybercrime, and Illicit Finance and Money Laundering Units.

As with all criminal cases, the defendants are presumed innocent unless and until proven guilty in a court of law.