L.A. man sentenced to 7 years in $2.7M stolen checks scam

A South Los Angeles man was sentenced Monday to seven years and three months in federal prison for his role in a scheme that siphoned more than $2.7 million from banks and credit unions by depositing checks stolen from the mail into accounts belonging to accomplices recruited through Instagram.

Carlos Corona, 36, was also ordered by U.S. District Judge John Walter to pay $2.72 million in restitution, according to the U.S. Attorney's Office.

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Corona pleaded guilty in May in downtown Los Angeles to one count each of conspiracy to commit bank fraud and aggravated identity theft.

From October 2020 to last August, Corona and associates 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.

Members of the scheme 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 conspiracy, Corona and co-defendant Jose Luis Edeza Jr., 31, of Sunland, 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.

Edeza also pleaded guilty to federal charges in L.A. federal court. He was sentenced in July to four years and nine months in prison.

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