A representation of financial crime and the consequences associated with it.
Sterlyn Lee Smith Jr. of Lancaster, California, has been sentenced to 57 months in prison for forging and depositing over $1.2 million in money orders. His fraud scheme lasted several years, during which he manipulated money orders and opened fraudulent bank accounts. In addition to prison time, he is required to make restitution of over $432,000 to his victims. The case sheds light on the need for community vigilance against financial scams.
In a case that exposes the dark side of financial scams, a 49-year-old man from Lancaster, California, has been handed a hefty 57-month prison sentence for his role in a scheme that involved forging and depositing more than $1.2 million in money orders. Sterlyn Lee Smith Jr., a local to Lancaster, has left quite a mark (albeit a negative one) on the community with his deceptive actions that spanned several years.
Smith’s fraudulent activities took place from July 31, 2013, to February 13, 2019. Over this significant period, he and his accomplices managed to strike a chord with unsavory tactics, purchasing money orders from United States Post Offices located in California and Nevada. But these weren’t ordinary transactions; they were carefully engineered to defraud financial institutions.
So, how did they pull it off? The group would alter money orders to reflect vastly inflated dollar amounts. After creating these forgeries, they would deposit them into various bank accounts, which had been fraudulently opened under other people’s names. The speed of this scheme was alarming; once the money orders were deposited, the funds were swiftly withdrawn, often before the banks even had a chance to catch wind of the forgeries. A staggering total of over 1,200 forged money orders were either deposited or attempted to be deposited throughout this six-year ordeal.
Eventually, Smith could no longer evade the long arm of the law. After pleading guilty to two counts of bank fraud—one for each bank he defrauded—he found himself facing a reality check. In addition to his prison term, the court ordered him to serve three years of supervised release once he completes his time behind bars. That’s a long stretch for someone who thought they could outsmart the system.
As if the prison time wasn’t enough, Smith was also ordered to make restitution to his victims. The amount? A staggering $432,482.63. This will surely put a dent in his plans moving forward, as making amends for his wrongdoing will be a tall order.
The case caught the attention of the United States Postal Inspection Service (USPIS), which conducted a comprehensive investigation into the sizable fraud operation. Their efforts, combined with the prosecutorial tenacity of Assistant United States Attorneys, laid the groundwork for the legal proceedings that would ultimately lead to Smith’s sentencing. The announcement about his conviction came from Acting United States Attorney Sue Fahami, who has emphasized that such schemes targeting financial institutions need to be addressed with urgency.
Residents of Lancaster and beyond are encouraged to remain vigilant against potential scams. If anyone suspects mail fraud or falls victim to such schemes, they are urged to report it to the USPS Fraud Complaint Hotline at 1-800-372-8347. Remember, it’s always better to be cautious and report any suspicious activity than to face the consequences of fraud.
In the end, Sterlyn Lee Smith Jr.’s case serves as a stark reminder of how quickly someone can go from being a regular community member to a felonious figure. Hopefully, this story will serve to inform and protect others from similar paths of deceit in the future.
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