Leader of multi-state check fraud conspiracy convicted

DETROIT - A New York man who led a multi-state check fraud scheme pled guilty today, announced United States Attorney Jerome F. Gorgon, Jr.

Gorgon was joined in the announcement by Inspector in Charge Felicia George of the Postal Inspection Service's Detroit Division and Special Agent in Charge Philip Spampinato of the Transportation Security Administration Office of Law Enforcement/Investigations Detroit.

Nazaly Mason Smith, age 33, originally from Maryland, was convicted of conspiracy to commit bank fraud for a scheme where he was responsible for over $1.5 million in losses.

At the hearing, Smith admitted to leading a check fraud conspiracy where he provided his subordinates with fake identification documents and stolen personal identifiable information (PII) for several victims. Smith then trained them to memorize the victims' PII, open bank accounts in the victims' names, and later fraudulently deposit the stolen checks.

Sentencing before United States District Judge Mark A. Goldsmith will occur after a presentence report is prepared. Smith faces a possible maximum sentence of not more than 30 years' imprisonment without the possibility of parole, a fine of not more than $1 million, and up to five years of supervised release following any term of imprisonment.

The case was investigated by the Department of Homeland Security, TSA Investigations and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Jason Dorval Norwood and K. Craig Welkener.