DALLAS – A federal grand jury in Dallas has indicted Moiz Mumtaz Ali, 36, of McKinney, Texas, on charges related to his role in fraudulently obtaining and cashing U.S. Treasury checks totaling approximately $16 million, announced John Parker, U.S. Attorney for the Northern District of Texas.
The indictment alleges that from December 2010 through June 2012, Ali operated and managed Gateway Newsstands, a convenience and check-cashing store located in Dallas, Texas. Ali was responsible for Gateway’s check cashing operations and oversaw the day-to-day operations of the store, approved transactions, and maintained control of the business’ bank accounts.
According to the indictment, Ali and others devised a scheme to defraud Neighborhood Credit Union by negotiating fraudulently obtained U.S. Treasury checks. False and fraudulent tax returns were filed using the personal identifying information of legitimate taxpayers without their authorization. Co-conspirators received U.S. Treasury checks that represented the fraudulently obtained tax refunds and brought them to Ali at Gateway. The U.S. Treasury checks were exchanged with Ali for cash that represented a percentage of the stated amount of each check.
Between December 2010 through June 2012, Ali negotiated and cashed approximately 3,423 U.S. Treasury checks totaling approximately $16,600,000. The vast majority of the checks were addressed to individuals with out-of-state addresses, and most of the checks had been obtained through fraud.
The indictment also alleges that Ali failed to require and/or retain copies of any identification documents applicable to the party cashing the Treasury checks or to the payees whose names were on the Treasury checks he accepted and cashed.
The charges against Ali include conspiracy to commit bank fraud, bank fraud, theft of public money and property, aggravated identity theft, and failure to develop, implement, and maintain an anti-money laundering program. If convicted, Ali faces up to 30 years in federal prison and a $1,000,000 fine for the bank fraud counts, up to 10 years in federal prison and a $250,000 fine for the theft of public money and property, up to 2 years in federal prison and a $250,000 fine for each count of aggravated identity theft, and up to 10 years in federal prison and a $500,000 fine for the failure to develop, implement, and maintain an anti-money laundering program.
The case is being investigated by the Internal Revenue Service and the U.S. Secret Service. Assistant U.S. Attorney P.J. Meitl is prosecuting the case. An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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