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Secret Service investigates check fraud

CRIME Sheriff: Suspects might be part of multistate scheme

This story ran on nwitimes.com on Friday, March 10, 2006 1:03 AM CST

Times Staff Report

What started as a simple call about a customer trying to cash a bogus check might have led Newton County police to a multistate check fraud scheme.

The U.S. Secret Service is investigating along with several other agencies, including the Sheriff's Department and Rensselaer police. While most people associate the Secret Service with presidential protection, its primary investigative mission is to safeguard the payment and financial systems of the United States, according to its Web site.

"The information we have so far indicates that this was a well-orchestrated scheme based from a suspect in the Chicagoland area involving multiple states, countless bogus checks and an enormous amount of money," Newton County Capt. Russ Schanlaub said in a press release about the arrests.

The investigation so far indicates those arrested may be the same group responsible for as much as $500,000 in thefts in portions of southern Indiana, the Newton County Sheriff's Department reported.

A call from the Community State Bank in Brook about a fraudulent check set the investigation in motion.

Newton County Sgt. Darrin Whaley stopped a vehicle Wednesday traveling on U.S. 41 near Morocco.

That stop led to the arrest of five people and the recovery of several thousand dollars and more fraudulent checks, the Sheriff's Department said.

At least four of those arrested have been identified as undocumented aliens from Mexico by Newton County Detective Tom VanVleet, who is leading Newton County's investigation, officials said Thursday.

The same suspects are accused of stealing money Tuesday through fraudulent checks totaling more than $25,000 in Rensselaer and DeMotte.

The Newton County Sheriff’s Department said in its release it is contacting area banks to watch for other possible accomplices.