On June 19, 2019, in the Western District of Missouri, Joseph Hooks and Mistie Smith were sentenced for bank fraud and aggravated identity theft in connection with a scheme involving the theft of U.S. Treasury tax refund checks. Hooks and Smith had previously been indicted for the offenses in May 2018, and they pled guilty in January 2019.

According to court documents, Smith contacted or recruited coconspirators, including Hooks, to participate in a scheme to negotiate U.S. Treasury checks that had been stolen from the U.S. Postal Service mail stream. These checks had been issued for tax refunds and were printed and mailed in Kansas City, Missouri. The coconspirators then obtained fraudulent identification documents, such as driver’s licenses, in order to deposit the stolen refund checks.

Between March 2016 and May 2016, the coconspirators negotiated the stolen refund checks at various branches of Academy Bank, a financial institution headquartered in Kansas City, Missouri. They used the false identification documents in order to open bank accounts in the names depicted on the checks. They then deposited the checks into the newly created accounts and subsequently withdrew the majority of the money. Hooks cashed eight U.S. Treasury tax refund checks in this manner, totaling $31,910.00. The scheme resulted in the fraudulent negotiation of approximately 99 checks, with a total financial loss of approximately $447,517.00.

Smith was sentenced to 36 months’ imprisonment followed by three years of supervised release. She was further ordered to pay $441,056.27 in restitution.

Hooks was sentenced to 36 months’ imprisonment followed by three years of supervised release. He was further ordered to pay $31,910.00 in restitution.

Source:  The facts in this case narrative come from the following publicly available documents: W.D. Mo. Indict. filed May 2, 2018; W.D. Mo. Judgments filed June 19 & 20, 2019; and W.D. Mo. Plea Agr. filed Jan. 25, 2019.