Leader of Bank Fraud Ring that Stole Over $4 Million from Bank of America Corporate Accounts Sentenced to Federal Prison

ATLANTA – Alwin Peterson, Jr. and three co-conspirators were sentenced late Tuesday for a bank fraud scheme that targeted over 150 Bank of America accounts and involved over $4 million in fraudulent withdrawals.

 “Their criminal actions damaged not only the small businesses they targeted, but also the employees and vendors who depended on timely payments to meet their day-to-day needs,” said U.S. Attorney John Horn.  “This case reminds business owners that they need to be vigilant in protecting sensitive personal and bank account information.”

“The U.S. Secret Service and our law enforcement partners work tirelessly to protect consumers and businesses against bank fraud schemes such as this,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.  “These sentences are a testament to that collaborative effort.”

According to U.S. Attorney Horn, the charges and other information presented in court:  From approximately November 2012 through his arrest in August 2014, Peterson led a bank fraud scheme that targeted over 150 corporate accounts at Bank of America.  Peterson first collected personal information about the individuals listed on the accounts, many of which belonged to small businesses.  Using that information, he then called Bank of America’s customer service and impersonated the true account holders.  In those calls, Peterson obtained additional account information, monitored account balances, and learned about the latest transactions on existing accounts.  Peterson also changed the online banking passwords for some of the accounts so that he could access the accounts by computer. 

After fraudulently acquiring the account information, Peterson employed a group of “runners” to enter bank branches and withdraw money from the accounts.  Using fake identifications, the runners posed as the true account holders and wired money from the victims’ accounts to other accounts Peterson opened.  Peterson also used counterfeit checks to steal money from the accounts.  Co-defendants Vivienne Bloch, Kori Henegar, and Allen Parham were all runners in the scheme.  The defendants traveled to numerous bank branches in different states throughout the country in an attempt to evade detection.  Peterson is responsible for over $4 million in fraudulent withdrawals from the targeted accounts.

All of the defendants were convicted of bank fraud conspiracy after pleading guilty, and were sentenced by United States District Judge Steve C. Jones as follows:

• Alwin Peterson, Jr., 38, of Fayetteville, Ga., was sentenced to 12 years, 1 month in prison to be followed by 5 years of supervised release, and ordered to pay $1,019,381.40 in restitution.
• Parham, 46, of Atlanta, Ga., was sentenced to 6 years, 6 months in prison to be followed by 5 years of supervised release, and ordered to pay $85,414.11 in restitution.
• Bloch, 54, of Decatur, Ga., was sentenced to 5 years in prison to be followed by 5 years of supervised release, and ordered to pay $538,383.50 in restitution.
• Henegar, 35, of Spring, Texas was sentenced to 2 years, 9 months in prison to be followed by 5 years of supervised release, and ordered to pay $395,583.87 in restitution.

This case was investigated by Special Agents with the United States Secret Service.  Bank of America fraud investigators provided valuable assistance throughout the investigation.

Assistant United States Attorneys Stephen H. McClain and Samir Kaushal prosecuted the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.