Federal Jury Convicts Baton Rouge Businessman In Fraudulent U.S. Treasury Check Scheme

BATON ROUGE, LA –United States Attorney Walt Green announced that a third defendant has been convicted in connection with Operation Checkmate, a federal criminal investigation into various check cashing businesses in Baton Rouge that cashed nearly $4 million in fraudulently-obtained U.S. Treasury checks.

This morning a federal jury convicted CARLOS L. LINARES, age 56, of Baton Rouge, Louisiana, for his role in defrauding the government out of more than $1.6 million following a week-long trial before Chief U.S. District Judge Brian A. Jackson.  Specifically, LINARES was convicted on all counts of a superseding indictment which charged him with theft of government funds, in violation of Title 18, United States Code, Section 641, failure to maintain an effective anti-money laundering program, in violation of Title 31, United States Code, Sections 5318 and 5322, and two counts of obstruction of a federal proceeding, in violation of Title 18, United States Code, Section 1505.  LINARIES was remanded into custody following his conviction.  His sentencing is scheduled for 9:30 a.m. on May 19, 2016.

During the relevant period, LINARES operated a store on Florida Boulevard in Baton Rouge called “Latinos Supermarket, LLC” where he cashed checks for a fee.  In just a fifteen-month time period spanning March of 2012 through May of 2013, LINARES cashed more than 250 U.S. Treasury checks with out-of-state addresses worth over $1.6 million.  The checks had been obtained through fraud and misused other people’s identities, which LINARES knew.  LINARES also knowingly failed to follow the requirements placed on him as a registered money service business and failed to prevent his store from being used to facilitate criminal activity and launder money.  Finally, LINARES attempted to obstruct efforts by the Internal Service Revenue to determine whether LINARES was following the law.

U.S. Attorney Green stated: “Extensive fraud schemes often require a network of people willing to facilitate the fraud for their personal gain.  My office will continue to aggressively pursue all those who facilitate such fraud schemes, including check cashers who knowingly cash fraudulent checks, ignore anti-money laundering requirements, and obstruct law enforcement efforts.  I am proud of the dedicated efforts of the prosecutors and IRS-CI in connection with this important matter.”

Special Agent in Charge Jerome R. McDuffie of IRS Criminal Investigation stated:  “We are pleased with the verdict returned today against Mr. Linares.  We will continue to work closely with the U.S. Attorney’s Office to prosecute those involved in these types of fraudulent schemes.   Mr. Linares intentionally participated in a scheme that involved the negotiation of fraudulently obtained tax refund checks and failed to comply with federal reporting requirements.  Today’s verdict is a reminder that fraud involving identity theft, and the prosecution of all involved parties, remains one of our agencies’ top priorities."

Other defendants who have been convicted in Operation Checkmate include: 

ALBELK REYES SERRATA, age 26, of Allentown, Pennsylvania, was convicted of conspiring to steal government funds, in violation of Title 18, United States Code, Section 371.  He was sentenced to 37 months in federal prison, followed by three years of supervised release.  He was also ordered to pay $2.2 million in restitution and to forfeit another $220,000.

ANYELINA REYES, age 36, of Baton Rouge, Louisiana, was convicted of conspiring to steal government funds, in violation of Title 18, United States Code, Section 371.  She operated a store on Florida Boulevard called “A&R Elite Team, LLC” and facilitated the cashing of approximately 370 fraudulently-obtained U.S. Treasury checks worth $2.2 million.  She was recently ordered to serve 6 months in federal prison, followed by a two year-term of supervised release.  She has been ordered to pay $2.2 million in restitution and to forfeit the proceeds of her scheme.

This ongoing investigation is being handled by the Internal Revenue Service—Criminal Investigation Division, with assistance from the Louisiana Office of Financial Institutions.  The matter is being prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Ryan Crosswell.