TRENTON, N.J. – Daniel White, a 51-year-old resident of Manalapan, New Jersey, is facing federal charges after allegedly orchestrating a brazen $530,000 check-kiting scheme built on a foundation of stolen identities. The scheme involved opening hundreds of fraudulent bank accounts and exploiting the lag time in check clearing to siphon off funds before the checks bounced, according to federal prosecutors.
White appeared in Trenton federal court today to answer to one count of bank fraud and one count of aggravated identity theft, Acting U.S. Attorney William E. Fitzpatrick announced. Magistrate Judge Douglas E. Arpert presided over the initial hearing. The investigation, a joint effort between multiple agencies, revealed a meticulously planned operation spanning from February 2015 to June 2016.
Prosecutors allege that White opened or directed the opening of a staggering 413 accounts at TD Bank, utilizing a total of 133 different Social Security numbers. A chilling 84 of those numbers belonged to unsuspecting victims whose identities were stolen for this elaborate fraud. White then flooded the system with 472 checks totaling over $530,000, writing them to himself or the owners of the newly created accounts. These checks were knowingly drawn against accounts with insufficient funds.
The scheme worked by depositing the fraudulent checks into the newly opened accounts, and then swiftly withdrawing the money before the bank realized the funds weren’t there. This “kiting” process allowed White and his associates to access cash based on phantom funds. The scale of the operation suggests a level of sophistication and a blatant disregard for the financial stability of both the bank and the identity theft victims.
If convicted of bank fraud, White faces a maximum potential penalty of 30 years in prison and a $1 million fine. The charge of aggravated identity theft carries a mandatory minimum sentence of two years in prison, to be served consecutively with any other sentence imposed. This means even if White receives a lighter sentence for bank fraud, he will be required to serve at least two additional years behind bars for stealing and utilizing the identities of others.
The U.S. Secret Service, led by Special Agent in Charge Mark McKevitt, spearheaded the investigation, receiving crucial support from the Ocean County Prosecutor’s Office, under Prosecutor Joseph D. Coronato, and the Manchester Police Department, directed by Chief Lisa D. Parker. Assistant U.S. Attorney Sarah M. Wolfe is prosecuting the case. It is important to remember that these are merely allegations, and White is presumed innocent until proven guilty in a court of law.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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