Coverson Sentenced for $3.3M Bank Fraud Scheme

Hammond, IN – A grim reminder of the impact of financial crime hit Hammond this week as Kareim J. Coverson, 37 years old from Calumet City, Illinois, was sentenced to serve 41 months in federal prison for his role in a multi-million-dollar bank fraud scheme.

Coverson pleaded guilty to conspiracy to commit bank fraud and faces the stiff sentence after his conviction. He’s ordered to pay $614,597.50 in restitution to the victims of the offense, which included large business checks stolen from the mail.

Documents reveal that Coverson was part of a scheme that spanned from May 2019 to June 2020, where he and his co-conspirators falsified corporations and opened fraudulent bank accounts. They then deposited the stolen checks into these accounts, leading to an unrecovered loss of over $1 million for affected businesses and financial institutions.

As the final defendant in a case involving 10 convicted individuals, Coverson’s sentence is the latest blow dealt by the Northern District of Indiana to organized criminal activity. His brother, Oliver Coverson, was sentenced to 96 months in April 2024 for organizing the scheme, while Scott Vue received a 51-month sentence earlier this year.

‘The Coverson brothers and their associates disrupted commerce and compromised the mail system,’ said Acting United States Attorney M. Scott Proctor. ‘Such conduct is not tolerated in our district, and serious consequences are meted out to those who engage in such activities.’

This case was investigated by multiple agencies including the United States Postal Inspection Service, the FBI, FDIC – Office of Inspector General, and the Lake County Sheriff’s Office, with Assistant United States Attorney Zachary D. Heater handling the prosecution.

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