Grand jury indicts six defendants in financial fraud scheme impacting victims across the country

BUFFALO, N.Y. -U.S. Attorney Michael DiGiacomo announced today that a federal grand jury has returned an indictment charging six defendants with conspiracy to commit bank fraud and aggravated identity theft for their roles in a financial fraud scheme. The charges carry a mandatory minimum penalty of two years in prison and a maximum of 30 years. Named in the indictment are:

• Jeffrey Fleischer, 36
• Crystal Velez, 36
• Blaine Webster, 40
• Reginald Seals, 47
• Johnny Ray Mcduffie, 36
• Anthony Zorilla A/K/A Anthony Velazquez, 28, all of Buffalo, NY.

Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated between August 2023 and May 2024, the defendants are accused of conspiring to fraudulently obtain funds from financial institutions by depositing stolen United States Treasury checks into bank accounts opened by the defendants. The defendants used fraudulent identification documents to open the accounts and then withdrew the funds from those bank accounts.

According to the indictment, the defendants obtained stolen United States Treasury tax refund checks that were payable to other persons, and then used fraudulent identification documents to open bank accounts in the names of the persons the tax refund checks were payable. The checks would then be deposited into the fraudulent bank accounts, allowing the defendants to withdraw or transfer the funds from the accounts for their benefit. Accounts were opened at various financial institutions including Northwest Bank, Evans Bank, Good Neighbors Credit Union, ServU Credit Union, Sweet Home Federal Credit Union, Erie Federal Credit Union, Corning Credit Union, Greater Niagara Federal Credit Union, Cornerstone Community Federal Credit Union, and High Point Federal Credit Union. The financial institutions were located in Buffalo, Amherst, Getzville, Niagara Falls, Painted Post, and Corning, NY, and Erie, Pennsylvania. The defendants are accused of stealing the identities of more than 12 victims living in NY, Florida, New Jersey, Virginia, Connecticut, and Oregon, with estimated losses totaling more than $1,300,000.

The Department of Justice has created the National Fraud Enforcement DivisionLinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link.. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support 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 case is being prosecuted by Assistant U.S. Attorney Paul E. Bonanno. The indictment is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Harry T. Chavis, Jr., the U.S. Treasury Inspector General for Tax Administration, under the direction of Special Agent-in-Charge Michael Carpenter, Northeast Field Division, the United States Secret Service, under the direction of Special Agent-in-Charge Charles T. Perras, the Erie County Sheriff's Office, under the direction of Sheriff John Garcia, the North Tonawanda Police Department, under the direction of Chief Keith Glass, the Town of Niagara Police Department, under the direction of Chief Craig Guiliani, the Amherst Police Department, under the direction of Chief Scott Chamberlin, the New York State Police, under the direction of Major Amie Feroleto, and the Erie and Niagara County Crime Analysis Centers.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

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