ALBANY, GA – A brazen counterfeit check scheme targeting small-town banks in South Georgia has resulted in federal sentences for eight individuals, according to court records. The operation, led by Fredner “Fresh” Reserve, saw fraudulent checks deposited and quickly withdrawn from accounts across multiple cities, causing a potential loss of between $40,000 and $95,000.
The scheme began to unravel in September 2019 when a sharp-eyed vice president at Southwest Georgia Bank (SWGB) noticed a pattern of suspicious deposits. Alerted to the fraudulent activity, the bank contacted the U.S. Secret Service. Simultaneously, investigators were probing a similar case at Ameris Bank, raising suspicions of a coordinated conspiracy. The Secret Service quickly partnered with the Moultrie Police Department to piece together the puzzle.
The break came on September 19, 2019, when co-defendant Khadijah Bailey was spotted attempting to withdraw cash from an account into which she’d deposited counterfeit checks. Officers apprehended Bailey, Reserve, and Deborah Johnson, who was actively assisting Reserve in the scheme. A search of Johnson’s vehicle turned up a trove of additional fraudulent checks and incriminating evidence. Earlier, Erica Langley had been arrested after depositing a fraudulent check and identified Reserve, known as “Fresh,” as her recruiter.
Investigators discovered that Bailey, Langley, Demetrius Collins, Jerry Lynn King, Jerra Carter, and Frank Thomas, along with other unnamed accomplices, were either opening new accounts or utilizing existing ones to deposit the counterfeit checks provided by Reserve and Johnson. Reserve ultimately admitted to conspiring with others to defraud financial institutions, fully aware of the scheme’s illegal nature. The scope of the fraud extended to SWGB and Ameris branches in several South Georgia cities, impacting local economies.
“The loss to these community banks would have been much greater if not for responsive bank employees who reported the crime and the quick investigative work by the U.S. Secret Service and the Moultrie Police Department,” said Acting U.S. Attorney Peter D. Leary. “Committing fraud against small businesses is not a victimless crime. People’s livelihoods can be severely damaged, and the harmed businesses can fail to recover. Our office will not hesitate to prosecute individuals caught deceiving people for profit.”
Clint Bush, Resident Agent in Charge for the U.S. Secret Service’s Albany office, emphasized the ongoing threat. “This case is another example that clearly shows criminals are continuously looking for ways to steal from financial institutions,” Bush stated. “The United States Secret Service, along with our state, local and federal law enforcement partners will continue to investigate, arrest and support the successful prosecution of the criminals who choose to commit this and other types of financial fraud in our community and around the nation.” Investigator Frank Newton of the Moultrie PD lauded the interagency cooperation, stating the rapid response prevented further harm to local banks and the community.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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