Chunhua Jin, Bank Fraud Conspiracy, New Jersey 2016

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$1.7 Million Check Fraud Scheme Exposed in NJ

A brazen check fraud scheme that bilked banks out of $1.7 million has been brought to an end, thanks to the guilty plea of a Bergen County woman.

Chunhua Jin, 45, of Ridgefield, New Jersey, pleaded guilty to one count of bank fraud conspiracy before U.S. District Judge Kevin McNulty in Newark federal court. The charge carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million.

According to court documents, Jin and others hatched a plan to deposit more than $1 million in fraudulent checks into different bank accounts. The scheme involved opening accounts at banks, such as Bank of America, in the names of fake businesses. The conspirators then made small deposits and withdrawals over several weeks to make the accounts appear legitimate.

Eventually, Jin or a conspirator would deposit a fake check for a large dollar amount into the account. The victim banks would typically credit some or all of the deposit amount on the fake check for immediate withdrawal. The conspirators would then withdraw as much money as possible from the account before the bank realized that the check was fraudulent and blocked further withdrawals.

Jin admitted that the scheme resulted in a loss to the banks of at least $1.7 million. The investigation leading to Jin’s guilty plea was credited to postal inspectors of the U.S. Postal Inspection Service, investigators from the Middlesex County Prosecutor’s Office, and investigators from the Morris County Prosecutor’s Office.

Jin is scheduled to be sentenced on August 24, 2016. She is represented by defense counsel Peter Weiner Esq. of Union City, New Jersey. The government is represented by Assistant U.S. Attorney Justin S. Herring of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

The case is a stark reminder of the importance of vigilance in the banking industry. ‘This case highlights the need for banks to be aware of these types of schemes and to take steps to prevent them,’ said U.S. Attorney Paul J. Fishman.