Providence man convicted in $800K counterfeit check scheme

PROVIDENCE – A federal court jury on Thursday convicted a 34-year-old Providence man in connection with a counterfeit check scheme that defrauded local banks of at least $800,000.

In a U.S. Department of Justice press release, U.S. Attorney Peter F. Neronha said Ernest Kar, 34, was convicted of one count of conspiracy to commit bank fraud and three counts of bank fraud.

He faces up to 30 years in federal prison and a fine of up to $1,000,000 on each count when he is sentenced by U.S. District Court Judge Mary M. Lisi on May 1.

Kar is one of nine individuals charged in U.S. District Court in Providence or in Rhode Island state court for participation in the fraudulent check-cashing scheme, dubbed “Operation Check-Mate.”

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According to the government’s evidence presented at trial, between October 2010 and January 2014, Kar and his co-conspirators created counterfeit checks via computer, recruited account holders who agreed to have the fake checks deposited into their accounts in exchange for cash, then made cash withdrawals from the accounts. Many of the counterfeit checks were drawn on accounts of several legitimate businesses.

On Dec. 16, 2013, during a joint federal and state law enforcement investigation into the fraudulent check scheme, Warwick Police discovered items used to create counterfeit checks, including check stock, a laptop computer, a printer and counterfeit checks, inside a motel room Kar was staying in and inside his vehicle.

Through the investigation, including forensic examinations of the items seized by Warwick Police, a federal arrest warrant was issued for Kar, who was arrested in Kentucky in April.

Three co-defendants, Jerry Zeah, 25; Garty Togbasi, 28; and John Sumo, 28, all of Providence, previously pleaded guilty to conspiracy to commit bank fraud and each have been sentenced to 30 months in federal prison. A fourth co-defendant, Allarick Hill, 36, of Pawtucket, has pleaded guilty to conspiracy to commit bank fraud and is awaiting sentencing.

Four additional co-defendants in this matter have been or are being prosecuted on state charges in R.I. Superior Court.
The federal court cases are being prosecuted by Assistant U.S. Attorneys Lee H. Vilker and Sandra R. Hebert.
“Operation Check-Mate” was jointly investigated by the U.S. Secret Service, Warwick Police Department, Providence Police Department and Rhode Island State Police.

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