Coverson Sentenced to 41 Months in Mail Fraud Scam

Hammond, IN – In a grim reminder of the reach of financial crime rings, Kareim J. Coverson, 37, of Calumet City, Illinois, was sentenced to 41 months in federal prison for his involvement in a multi-million-dollar mail fraud scheme.

Coverson’s sentence was announced by Acting United States Attorney M. Scott Proctor after he pleaded guilty to conspiracy to commit bank fraud. The defendant is the last of ten individuals to be convicted and sentenced in this case, which has caused over $1 million in unrecovered losses for businesses and financial institutions.

According to court documents, Coverson participated in a scheme that operated from May 2019 to June 2020. The fraudulent operation involved stealing large business checks out of the mail, registering fictitious corporations in Indiana and Illinois, opening fraudulent corporate bank accounts, and depositing the stolen checks into these accounts.

The sentences for Coverson’s co-conspirators have been equally severe, with his brother, Oliver Coverson, sentenced to 96 months for organizing the scheme. Scott Vue received a 51-month sentence earlier this year for his role in opening fraudulent bank accounts and depositing stolen checks.

United States District Court Judge Phillip P. Simon also ordered Coverson to pay $614,597.50 in restitution to the victims of the offense and to serve two years of supervised release upon his release from prison.

“The Coverson brothers and their associates disrupted commerce and compromised essential mail and financial systems,” said Proctor. “This case demonstrates that such conduct is not tolerated in the Northern District of Indiana, and those responsible will face serious consequences.”

This investigation was conducted by the United States Postal Inspection Service with support from the FBI, FDIC Office of Inspector General, and the Lake County Sheriff’s Office. The prosecution was led by Assistant United States Attorney Zachary D. Heater.

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