A New York man accused of masterminding a multi-state check-fraud ring that drained more than $1.5 million from bank accounts, many of them in Michigan, has now admitted he was at the center of it.
Prosecutors say Nazaly Mason Smith, 33, pleaded guilty Thursday in federal court in Detroit, acknowledging that he led a crew that used fake IDs and stolen personal information to open bank accounts and deposit stolen checks. Sentencing has not yet been scheduled.
According to a press release from the U.S. Attorney's Office for the Eastern District of Michigan, Smith admitted that he supplied underlings with bogus identification documents along with stolen personally identifiable information. He then trained them to memorize victims' data, open accounts in those victims' names, and funnel stolen checks through those accounts. Federal authorities say the scheme produced losses topping $1.5 million.
The U.S. Attorney's Office said the investigation pulled in multiple federal agencies, including the Department of Homeland Security, TSA Investigations, and the U.S. Postal Inspection Service. The prosecution is being handled by Assistant U.S. Attorneys Jason Dorval Norwood and K. Craig Welkener.
How investigators say the ring worked
As reported by The Detroit News, court records show the conspiracy ran from May 2022 through December 2023. Smith and his co-defendants were indicted in February 2025.
Investigators say Smith provided false IDs and stolen personal information to his recruits, who memorized victims' details, opened bank accounts in those names, and then deposited stolen checks. Many of those accounts were opened in Wayne and Oakland counties. According to court filings cited by The Detroit News, bank records and postal traces ultimately helped tie the deposits back to the group.
Federal probe and prosecution
The U.S. Attorney's Office release says Homeland Security Investigations, TSA Investigations, and the U.S. Postal Inspection Service all played roles in the probe that unraveled the operation.
Prosecutors told the court the case will be sentenced before U.S. District Judge Mark A. Goldsmith. A presentence report will be prepared before a sentencing date is set. Smith faces a possible maximum sentence of up to 30 years in prison, a fine of up to $1,000,000, and up to five years of supervised release.
What is next for Smith
Court records and reporting indicate Smith and his co-defendants were indicted in February 2025, and The Detroit News identifies Michael Rataj as Smith's attorney.
With sentencing still ahead, prosecutors will prepare a presentence report, and the case is expected to move toward final disposition in the coming months. Officials say anyone who suspects their identity may have been used in the scheme should contact their bank and local law enforcement.
