An Alabama man described by federal authorities as the ringleader of a multi-state bank fraud operation involving fraudulent US Treasury cheques, has been sentenced to five years in prison.
Eddarrius Tyjuan Wallace, 37, of York, was sentenced to 60 months in federal prison and a $25,000 fine, according to the U.S. Attorney’s Office for the Northern District of Alabama. In May, Wallace pled guilty to conspiracy to commit bank fraud and bank fraud.
The scheme comprised bogus deposits and withdrawals totaling more than $1.8 million at banks in Alabama and Mississippi, according to court documents.
Prosecutors claim Wallace organized and supervised the conspiracy between June and September 2023. According to the Justice Department, he recruited and coached others to deposit and withdraw funds from US Treasury checks with falsified endorsements.
The investigation began in June 2023, when a Tuscaloosa bank reported that two Treasury checks with falsified endorsements had been deposited. Authorities later discovered other fraudulent transactions related to the scheme.
Wallace was detained on Sept. 19, 2023, during a traffic stop in Madison, Mississippi, along with five other people, according to authorities. Wallace was driving and carrying $11,969 in cash, according to court filings.
Officers inspecting the vehicle discovered a bogus identification card, mail, and many bank debit cards with identities that did not match any of the occupants, according to prosecutors.
Wallace was on bond for separate state convictions during the fraud scheme, according to court records.
“This type of fraud is a double problem: it steals money from the federal government and undermines the integrity of our banking system,” U.S. Attorney Phillip W. Williams Jr. said in a statement. “My office will continue to work closely with our law enforcement partners to investigate and prosecute those who steal from the government and manipulate the financial system for personal gain.”
Joel Weaver, special agent in charge of the Treasury Inspector General for Tax Administration’s investigation, stated that the agency is committed to defending the nation’s tax administration system and pursuing those who misuse Treasury return checks.
The matter was investigated by the Treasury Inspector General for Tax Administration, the Mississippi Attorney General’s Office, and the Madison Police Department. Daniel S. McBrayer, an assistant US attorney, prosecuted the case.
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