Man Sentenced to Nearly Five Years in Prison for Role in Stolen Checks Scam

LOS ANGELES (CNS) - A Los Angeles man was sentenced Wednesday to four years and nine months in federal prison for his role in a scheme that defrauded banks and credit unions out of at least $2.7 million by depositing checks stolen from the mail into bank accounts belonging to accomplices recruited through Instagram.

Jose Luis Edeza Jr., 31, of Sunland, pleaded guilty in May in downtown Los Angeles to one count of conspiracy to commit bank fraud and one count of aggravated identity theft, according to the U.S. Attorney's Office.

From October 2020 to last August, Edeza and co-conspirators took part in the scheme that involved stealing checks from the mail, including some that were taken from collection boxes outside post offices. The thieves would then contact account holders through social media and solicit them to provide their debit cards and bank account information, promising them a cut of any stolen funds deposited into their accounts.

Edeza and others exchanged the bank account holders' information, then deposited the stolen checks into the bank accounts. In most cases, the stolen checks were falsely endorsed in the original payee's name, prosecutors said, but in some cases the checks were altered to make the payee name correspond to the bank account into which the checks were being deposited.

The defendants would then make cash withdrawals, electronic transfers or debit card purchases to drain the money from the accounts.

During the scheme, Edeza and co-defendant Carlos Corona, 36, of South Los Angeles, attempted to steal at least $5.3 million from the affected banks and credit unions, ultimately causing actual losses of at least $2.7 million, according to the U.S. Attorney's Office.

Corona also pleaded guilty to federal charges and is scheduled for sentencing on Aug. 19 in LA federal court.