Jeffrey Kim, Bank Fraud, California 2022

A notorious bank fraudster has struck again in the Golden State. Jeffrey Kim, a 51-year-old man from Colorado, pleaded guilty to bank fraud and aggravated identity theft.

According to court documents, between Feb. 1, 2017, and July 24, 2017, Kim participated in a nationwide check kiting 'bust out' scheme in order to obtain cash from banks. The scheme's participants obtained a real Republic of Korea passport that was altered to bear a new photograph and name, which they used to open bank accounts with a small amount of cash.

The accounts were dormant until a time the participants believed the bank would allow the account holder to deposit a check and make withdrawals before the check actually cleared. At that time, the participants wrote checks from a different bank account with non-sufficient funds, deposited those checks into the dormant account, and then withdrew cash from the dormant account before the checks cleared.

On Feb. 16, 2017, a participant opened an account at a BMO Harris branch in Arizona using a falsified Korean passport. Thirty-six checks were written against the account, all of which eventually bounced for insufficient funds. Another participant opened a Wells Fargo checking account in Arizona, using a different falsified Korean passport. Kim participated in the bust-out of this account.

In addition, on May 26, 2017, Kim purchased a postal money order for $995 from the Carmichael post office, using a debit card connected to one of the Wells Fargo bust-out accounts. Three days later, another participant deposited the money order into a different Wells Fargo account. The funds from the money order were used to give the bank account the appearance of legitimacy until that account was eventually 'busted out' as part of the scheme.

Kim's bust-out activity resulted in an actual loss of $196,058 to the banks, and an intended loss of $380,429 based on unsuccessful bust-out attempts.

Kim is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Oct. 6, 2022. Kim faces a statutory maximum penalty of 30 years in prison and a fine of up to $1 million for bank fraud and a mandatory consecutive two years in prison and a fine of up to $250,000 for aggravated identity theft.

Source: https://www.justice.gov/usao-edca/pr/colorado-man-pleads-guilty-bust-out-bank-fraud-scheme-sacramento-area-and-elsewhere