Jul 18, 2008 11:13 pm US/Pacific
Suspects Arrested In Check Cashing Scam
Reporting
Ron Jones
NICHOLAUS (CBS13) ―
Someone's benefiting off your hard earned money. Millions of dollars were allegedly stolen in a nationwide check cashing case.
The investigation began here at a small post office in Nicholaus. But it was a quick thinking post master who took down some big city criminals.
Feds say a nationwide fraud organization out of LA has been using this small post office in the sleepy town of Nicholaus as one of it's operating headquarters.
In an IRS document obtained by CBS13, the LA organization allegedly had state unemployment checks mailed to post office boxes in Nicholaus, Marysville and Nevada. Feds say the group received the unemployment checks after stealing personal information from old check stubs found in dumpsters or buying the information on the black market. The suspects then became that person, applied for unemployment benefits and had their checks sent to the post office.
Documents also show since 2001the organization raked in $3 million tax payer dollars. Most of the checks were cashed at a check cashing business in Marysville. The owner refused to talk to us, but according to the IRS he did nothing wrong because the state checks were legal. But the way they were obtained may have been illegal.
"No [it's] not hard at all," said Maria, Marysville resident.
Some people who use check cashing businesses say it's easy to slip a bad check by. It's all about relationships.
"Some places will go 'like of I know you and you're a regular of mine so I trust you'," said Maria.
"They see your face, they're going to trust you. They're going to think you're going to be honest and that one time you're not going to be honest you're going to give them a phony check," said Melissa, Marysville resident.
It all came to an end when the three major suspects were taken down after the post master here in Nicholaus got a tip and called the feds.
The suspects are now facing federal charges but there are many still on the run hoping to get your pay stub and personal information.
The IRS says the organization wired most of the money to associates and family members in Mexico, California and Arizona.
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