Maria Eliza Garza, Bank Fraud Conspiracy, Texas 2008

HOUSTON, Texas – A brazen scheme to defraud seven different Houston-area banks of over $2 million has led to a guilty plea from a former title company employee. Maria Eliza Garza, a resident of Harris County, has admitted to conspiring with a co-conspirator to carry out a check kiting scheme between January 2007 and June 2008.

According to documents filed with the court and admitted by Garza during her guilty plea, the co-conspirator devised the scheme, which used multiple bank accounts held in the name of title companies he controlled. Garza assisted by discussing which bank accounts needed money, preparing checks to sign, and depositing signed checks at the banks.

As part of her plea, Garza admitted that she and her co-conspirator artificially inflated the account balances by depositing checks drawn on the title companies’ accounts, even after three of the banks discovered the kiting activity and shut down the relevant accounts. When the scheme finally collapsed in June 2008, the total loss to the affected banks was $2,099,65.72.

The scheme, which was carried out by Garza and her co-conspirator, targeted seven different financial institutions in the Houston area. The co-conspirator, whose identity has not been revealed, allegedly devised the scheme, while Garza assisted by preparing checks to sign and depositing them at the banks.

Garza faces up to five years in federal prison and a $250,000 fine or twice the pecuniary gain or loss at her sentencing on December 17, 2013. The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney John Pearson.

As part of her plea, Garza admitted to helping carry out the scheme to artificially inflate the account balances and place the funds at her co-conspirator’s disposal to use as interest-free loans and lines of credit. The guilty plea marks a significant victory for law enforcement and efforts to combat financial crimes in the Houston area.

In a statement, U.S. Attorney Kenneth Magidson said, ‘The guilty plea of Maria Eliza Garza is a testament to the tireless efforts of the FBI and our office to hold accountable those who engage in financial crimes.’

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