Jefferson County man sentenced for bank fraud related to an altered U.S. Treasury check

BEAUMONT, Texas - A Beaumont man has been sentenced to federal prison for a bank fraud scheme in the Eastern District of Texas, announced U.S. Attorney Jay R. Combs.

Byron Demetrius Franklin, 61, pleaded guilty to bank fraud and was sentenced to 27 months in federal prison by U.S. District Judge Marcia A. Crone on September 3, 2026.

According to information presented in court, in January of 2025, Franklin attempted to deposit a U.S. Treasury check in the amount of $1,197,149.98 at a Walmart ATM in Houston to a U.S. Automobile Association federal banking account (USAA). Franklin called USAA and spoke with a bank financial investigator to complain that the check amount was read incorrectly by the ATM and only deposited $119,714.99. USAA credited Franklin's account a difference of $1,077,434.99 for the reported error, but gave Franklin access to the $119,714.99, while they verified the check's authenticity. Between January 18, 2025, to January 20, 2025, Franklin withdrew a total of $5,507.90 from the account via JP Morgan Chase and 5Point Credit Union ATMs in Beaumont before USAA closed Franklin's account because the check was found to have been altered.

This case was investigated by the U.S. Secret Service and U.S. Automobile Association and prosecuted by Assistant U.S. Attorney Rachel Grove.

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