$3.4 Million Fraud Victimizes Alabama's Largest Credit Union
Eighteen persons are arrested and charged with theft, and arrest warrants are issued for five other individuals.
Police are investigating a $3.4 million fraud scheme that victimized members of Alabama’s largest credit union, which led to the arrest of 18 persons.
In September 2023, the $7.6 billion Redstone Federal Credit Union in Huntsville began experiencing an influx of transfer fraud. After members’ account information was obtained, funds from those accounts were fraudulently transferred into other accounts, according to investigators at the Morgan County Sheriff’s Office of Investigation in Decatur.
Police did not say how the fraudsters obtained member account information or how many member accounts were affected.
The stolen funds were then accessed through ATM withdrawals, in-store or online purchases, and through Cash App.
As of last week, there had been a total of $3,453,655 in attempted fraudulent transfers with a total loss of $2,000,397, investigators said.
In addition to the 18 individuals who have been arrested, police have also issued arrest warrants for five other individuals.
“Any Redstone member who suffered a loss resulting from fraudulent activities were fully reimbursed by Redstone,” the credit union said in a prepared statement. “We are committed to protecting our members’ accounts, which are insured through the National Credit Union Administration.”
Redstone encourages members to check their accounts regularly and use the tools available to alert them of any unusual activity.
“If any unauthorized activity is suspected, we ask members to notify us immediately at 800-234-1234 or info@redfcu.org,” the credit union said.
Because the investigation is ongoing, Redstone declined to make additional comments.
The persons who have been arrested, who each have been charged with theft of property, include: Bobby Wilkins, 61 of Decatur; Nia Janaa Brown, 20 of Decatur; Devron Lerand Carroll, 23 of Decatur; Cody Allen Powell, 32 of Lacey’s Spring; Jayden Mekhi Burton, 19 of Decatur; Markus De’angelo Tapscott, 18 of Hartselle; Rosie Lee Wallace, 51 of Decatur; Steven Lee Steiner, 71 of Decatur; Stella Jean Couch, 53 of Hartselle; John Karlik Jr., 58 of Decatur; Krista Lynn Spurgeon, 44 of Lacey’s Spring; Eterniti Lee-Ann Powell, 23 of Huntsville; Paula Carol Ivey Hatfield, 55 of Hartselle; Lily-Grace Little, 19 of Priceville; Tamari Michelle Boulden, 21 of Decatur; Tyeisha Amia Lewis, 22 of Decatur; Arieanna Michelle Swopes, 20 of Decatur; and Dana Carter Mosely, 56 of Decatur.
Warrants have been issued for Kobe Elijah Sharpley, 21 of Decatur; Calup Duvun Cunningham, 21 of Decatur; Traevion Malik Hill-Lawson, 18 of Decatur; and Joseph Anthony Berry, 68 and Jakey Deshun Conner, 22 of Decatur.