Dallas man arrested for multimillion dollar U.S. Treasury check fraud scheme
DALLAS - A Dallas man is accused of cashing U.S. Treasury checks worth over $15 million after stealing the identity of multiple business owners in a large fraud scheme.
What we know:
34-year-old Kendrick Lamont Fugett of West Dallas was arrested on Thursday, August 20, and charged with bank fraud and aggravated identity theft.
He is accused of using stolen identities and fake IDs to deposit over $15 million in U.S. Treasury Checks intended for businesses across the United States.
Court documents state Fugett assumed the identity of the chief financial officer of an Austin-based technology company and deposited a check with more than $13.8 million at an Origin Bank branch in Dallas.
(GERMANY OUT) gavel, hammer and book (Photo by Wodicka/ullstein bild via Getty Images)
Fugett is also accused of assuming the identity of a billionaire chairman of a holding company associated with the intended recipient business of a $447,000 check he cashed at a Bank of America branch in Mesquite. Fugett presented a fraudulent Illinois driver's license when making that transaction.
Fugett had multiple outstanding warrants from the Collin County Sheriff's Office, the Dallas County Sheriff's Office, the Denton County Sheriff's Office and the Arlington Police Department for fraud, identity theft and providing false statements.
In July 2024, Fugett was arrested in Nashville after he attempted to open bank accounts using fraudulent identities.
If Fugett is convicted, he faces a maximum sentence of 30 years for bank fraud and a mandatory 2-year sentence for aggravated identity theft.
What they're saying:
"Stealing identities to siphon millions of dollars from the U.S. Treasury is not just fraud, it’s an attack on the integrity of our financial system," said U.S. Attorney Ryan Raybould. "As alleged, Mr. Fugett carried out a brazen scheme to impersonate corporate officers, fabricate documents and manipulate banks in order to pocket taxpayer funds. His arrest makes clear that our office, together with IRS Criminal Investigation, will aggressively pursue anyone who targets our financial institutions and the businesses they serve."
"This arrest underscores IRS-CI’s unwavering commitment to protecting the integrity of the U.S. financial system," said IRS CI’s Texas Field Office Special Agent in Charge Christopher J. Altemus Jr. "The defendant’s alleged scheme was deliberate, sophisticated, and designed to exploit public trust. The women and men of IRS-CI worked tirelessly to uncover Mr. Fugett’s alleged patterns of deception and misrepresentation, and we will continue to pursue anyone who attempts to steal from taxpayers."
What's next:
Fugett is expected to make his first appearance in federal court on Friday, Aug. 21.
The Source: Information in this story comes from the U.S. Department of Justice.