Brooklyn man Kenneth Cassidy, 50, has been arrested and charged with wire fraud in a brazen $2.8 million scam targeting Lowe’s home improvement stores across the United States. The criminal complaint, unsealed Thursday in Buffalo, N.Y., alleges Cassidy orchestrated a years-long fraud operation using counterfeit checks to open phony Lowe’s Accounts Receivable (LAR) accounts.
Between June 12, 2012, and December 21, 2015, Cassidy allegedly opened approximately 117 fraudulent LAR accounts nationwide. Using those accounts, he made thousands of dollars in unauthorized purchases at Lowe’s retail locations until the funds were drained or the accounts were shut down by the company. Authorities now believe the total loss to Lowe’s reached $2,800,000—nearly a million more than initial estimates.
At least three of the fake accounts were opened at Lowe’s stores in the Western District of New York, with fraudulent transactions carried out in the Buffalo and Rochester areas. Each transaction leveraged stolen formatting and forged financial instruments, allowing Cassidy to bypass standard verification procedures for extended periods, investigators say.
Cassidy made his initial appearance before U.S. Magistrate Judge Michael J. Roemer and remains in federal custody. A detention hearing is scheduled for January 18, 2017, at 11:30 a.m. If convicted, he faces a maximum sentence of 20 years in prison and a $250,000 fine.
The case was the result of a coordinated investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Kathy A. Enstrom, Acting Special Agent-in-Charge, New York Field Office; the New York State Police, under Major Robert C. Gregory; the U.S. Marshals Service, led by Charles Salina; and Immigration and Customs Enforcement, Homeland Security Investigations, under Special Agent-in-Charge James C. Spero.
The charge against Kenneth Cassidy is merely an accusation. He is presumed innocent until and unless proven guilty in a court of law.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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