An Illinois man, Kareim J. Coverson, 37, of Calumet City, has been handed down a 41-month prison term for his role in a bank fraud conspiracy. According to a report by the U.S. Attorney's Office for the Northern District of Indiana, Coverson pleaded guilty and will also face 2 years of supervised release, in addition to having to repay $614,597.50 to the victims of his scheme.
The court documents reveal that from May 2019 through June 2020, Coverson actively participated in a setup to illicitly acquire over $3.3 million, money that came from large business checks stolen from the mail. To effectively carry out the fraud, he and his accomplices went so far as to register fake corporations and open bank accounts to deposit these stolen checks. This operation ultimately caused more than $1 million in unrecovered losses to various businesses and banks.
This case doesn't just revolve around Coverson. He is the last of ten defendants convicted in connection with this extensive fraud. His brother, Oliver Coverson, was sentenced to 96 months behind bars for orchestrating the conspiracy, and earlier this year, Scott Vue received a 51-month sentence for his contributions, which included opening the fraudulent bank accounts and bringing new members into the fold.
Acting U.S. Attorney M. Scott Proctor emphasized the gravity of the crime in a statement, declaring, "The Coverson brothers and their associates assembled a large criminal conspiracy that caused millions of dollars of harm to businesses and banks throughout the United States." "These defendants stole from small and large businesses alike, disrupting the flow of commerce, and compromising the mail and financial systems on which everyday Americans rely to conduct their business."
The investigation was a collaborative effort involving the United States Postal Inspection Service, joined by the FBI, FDIC – Office of Inspector General, and the Lake County Sheriff's Office. Assistant U.S. Attorney Zachary D. Heater took the helm in the prosecution of the case.
