Lockport Duo Indicted in $123K Bank Fraud Scheme

Two 22-year-old men from Lockport, Michael Rosier and Cody Kross-Rosier, are facing federal charges in a brazen bank fraud scheme that netted nearly $123,000 from seven federally insured financial institutions. A federal grand jury returned an eight-count indictment charging both men with bank fraud and conspiracy to commit bank fraud, crimes that carry a maximum penalty of 30 years in prison and a $1,000,000 fine.

According to Assistant U.S. Attorney MaryEllen Kresse, the scheme unfolded between January and March 2014, when Rosier and Kross-Rosier allegedly conspired with others to manipulate bank accounts and create false balances. They opened new accounts and exploited existing ones, floating checks between institutions to conceal insufficient funds — a classic kiting operation designed to fool banks and draw out cash and goods.

The fraud reached its peak in January 2014 when the pair deposited a $100,000 check into a Citizens Bank account held by Kross-Rosier. The catch? The check was drawn on a closed Bank of America account. Despite the invalid source, they attempted to leverage the phantom funds — including a $5,000 transfer to an E*TRADE account controlled by Rosier and a nearly $16,000 shopping spree at Men’s Wearhouse in Amherst, NY.

Authorities say the scheme relied on speed and misdirection, exploiting processing delays between banks to extract real money from fake deposits. Investigators believe the defendants and their associates cycled checks through multiple accounts, temporarily inflating balances to authorize withdrawals and purchases before the fraud was detected.

The case was cracked by the United States Secret Service, led by Special Agent-in-Charge Lewis Robinson. The indictment marks the culmination of a years-long investigation into the pair’s financial maneuvers. Rosier and Kross-Rosier are scheduled to be arraigned on February 21, 2017, at 11:15 a.m. before U.S. Magistrate Judge Jeremiah J. McCarthy in Buffalo, NY.

The U.S. Attorney’s Office emphasized that an indictment is merely an accusation, and both Michael Rosier and Cody Kross-Rosier are presumed innocent until proven guilty in a court of law. For more information, contact Barbara Burns at (716) 843-5817 or via fax at (716) 551-3051.