New York man accused of helping lead check fraud scheme pleads guilty in Michigan court
A New York man accused of helping to lead a multi-state check fraud scheme has pleaded guilty, according to a court record filed Thursday in the U.S. District Court for the Eastern District of Michigan.
Nazaly Mason Smith, 33, pleaded guilty to one count of conspiracy to commit bank fraud for the scheme that took place between May 2022 and December 2023 in eastern Michigan "and elsewhere," according to the plea agreement.
Smith recruited and trained individuals, including a woman who pleaded guilty and three others charged in the scheme, to enter banks and open accounts in the names of stolen check victims, the court document said.
"To accomplish this, defendant [Smith] provided his co-conspirators with fake identification documents, along with the real personal identifiable information (PII) of the stolen check victims," the plea agreement said.
The individuals Smith trained would deposit into the fraudulent accounts the stolen checks, which included U.S. Treasury and personal checks, then he and his co-conspirators would withdraw and distribute the funds, according to the court document. The plea agreement did not disclose how the checks were stolen.
Smith was responsible for over $1.5 million in losses, the plea agreement said. He faces up to 30 years in prison and a maximum fine of $1 million.
The Department of Justice said Smith's sentencing will happen after a presentence report is prepared.
Shannon Kurrie, 61, pleaded guilty to one count of conspiracy to commit bank fraud in the scheme earlier this month, according to the federal agency. Cases against the three others charged are ongoing, court records show.
