Ringleader of a Multi-State Bank Fraud Scheme Sentenced to Five Years in Prison

BIRMINGHAM, Ala. - A Sumter County man has been sentenced for his role in a multi-state bank fraud scheme, announced U.S. Attorney Phillip W. Williams Jr.

U.S. District Judge Anna M. Manasco sentenced Eddarrius Tyjuan Wallace, 37, of York, Alabama, to 60 months in prison and a $25,000 fine. In May, Wallace pleaded guilty to conspiracy to commit bank fraud and bank fraud.

"This type of fraud is a double problem: it steals money from the federal government and undermines the integrity of our banking system," said U.S. Attorney Williams. "My office will continue to work closely with our law enforcement partners to investigate and prosecute those who steal from the government and manipulate the financial system for personal gain."

"The Treasury Inspector General for Tax Administration (TIGTA) aggressively investigates individuals who attempt to exploit U.S Treasury refund checks meant for hard working taxpayers for their own private gain," said TIGTA Special Agent in Charge Joel Weaver. "TIGTA's mission is to protect the integrity of our nation's tax administration system. We are committed to working with our law enforcement partners to ensure that those who violate federal laws are prosecuted to the fullest extent possible."

According to court documents, between June and September 2023, Wallace organized and managed a multi-state bank fraud conspiracy targeting the fraudulent deposit and withdrawal of United States Treasury checks. Wallace recruited and trained others to carry out his fraud scheme. In June 2023, the scheme was brought to the attention of law enforcement when a bank in Tuscaloosa, Alabama, reported that two U.S. Treasury checks with forged endorsements had been deposited. Over the course of the conspiracy, multiple fraudulent deposits and withdrawals were made in Alabama and Mississippi totaling over $1.8 million. During this time, Wallace was on bond for state offenses.

On September 19, 2023, officers with the Madison Police Department in Mississippi arrested Wallace and five others during a traffic stop. Wallace was the driver and had $11,969 of cash in his pocket. Officers searched the vehicle and found a fraudulent identification card, mail, and multiple bank debit cards with names that did not match any of the car's occupants.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ("Fraud Division"). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

The U.S. Treasury Inspector General for Tax Administration investigated the cases along with the Mississippi Attorney General's Office and the Madison, Mississippi, Police Department. Assistant U.S. Attorney Daniel S. McBrayer prosecuted the case.