Ernest Kar, Counterfeit Check Scheme, Rhode Island 2023

Rhode Island Man Sentenced to 7 Years in Prison for Running $800,000 Counterfeit Check Scheme

PROVIDENCE, R.I. – In a major blow to counterfeiters, Ernest Kar, 34, of Providence, was sentenced to 84 months in federal prison for participating in a counterfeit check scheme that defrauded local banks of at least $800,000.

Kar was convicted at trial on February 12, 2015, of conspiracy to commit bank fraud and three counts of bank fraud. The scheme, dubbed ‘Operation Check-Mate,’ involved Kar and his co-conspirators creating counterfeit checks via computer, recruiting account holders to deposit the fake checks into their accounts in exchange for cash, and then making cash withdrawals from the accounts.

At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Kar to serve a consecutive sentence of 9 months imprisonment for violating the terms of supervised release on a prior federal conviction in South Dakota for passing counterfeit checks. Additionally, Kar was ordered to serve a term of 5 years of supervised release upon completion of his prison terms and to pay restitution in the amount of $532,152.

Kar’s sentences are announced by United States Attorney Peter F. Neronha; Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; Warwick Police Chief Colonel Stephen M. McCartney; Providence Police Chief Colonel Hugh T. Clements, Jr.; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.

Kar is one of nine individuals charged for their participation in the fraudulent check-cashing scheme. Three co-defendants, Jerry Zeah, 25, Garty Togbasi, 28, and John Sumo, 28, all of Providence, previously pleaded guilty to conspiracy to commit bank fraud and are serving sentences of 30 months in federal prison. A fourth co-defendant, Allarick Hill, 37, of Pawtucket, previously pleaded guilty to conspiracy to commit bank fraud and is currently serving a sentence of 37 months in federal prison.

The federal court cases were prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Sandra R. Hebert. ‘Operation Check-Mate’ was jointly investigated by the United States Secret Service, Warwick Police Department, Providence Police Department, and Rhode Island State Police. These charges were brought in connection with the President’s Financial Fraud Enforcement Task Force, which was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.

The task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.

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