Scales-Of-Justice
An Iowa man is appealing his 32-year federal prison sentence for orchestrating a multi-million-dollar fraud scheme that victimized credit unions and banks, as well as for money laundering and fentanyl distribution.
Stephan Rashad Haley, 36, admitted he directed a fraud scheme, working with other co-conspirators from Iowa, Illinois, Indiana and Arizona from May to August 2023, which victimized seven credit unions and seven banks. The portion of the conspiracies in which Haley participated totaled to more than $3.5 million in losses to more than 10 victims, according to federal prosecutors.
During a hearing at U.S. District Court in Des Moines last October, Haley pleaded guilty to one felony count of conspiracy to commit bank fraud, one felony count of conspiracy to commit money laundering, and one felony count of conspiracy to distribute a controlled substance, 400 grams or more of a mixture and substance containing a detectable amount of fentanyl.
After stealing business checks, the co-conspirators used the names of the businesses on the checks or similar names to register the companies with the IRS and state government agencies — including the Iowa Secretary of State. After obtaining the registration documents and IRS employer identification numbers, the fraudsters opened or attempted to open accounts at credit unions and banks in the names of the sham businesses to deposit the stolen checks.
After depositing the phony business checks into credit union and bank accounts, the fraudsters withdrew large amounts of cash or obtained cashiers or official checks from the accounts and distributed the proceeds among themselves. Oftentimes, the fraudsters obtained cashiers or official checks written to other sham entities that were created for laundering stolen check proceeds.
The stolen business checks had an estimated value of more than $10 million, court documents showed.
According to court documents, the credit unions victimized by the fraud scheme included the $543 million Ascentra Credit Union in Bettendorf, the $1.6 billion Collins Community Credit Union in Cedar Rapids, the $809 million Community Choice Credit Union in Johnston, the $218 million Financial Plus Credit Union in West Des Moines, the $653 million Greater Iowa Credit Union in Ames, the $10.6 billion GreenState Credit Union in North Liberty and the $7.9 billion Veridian Credit Union in Waterloo. Banks victimized by the fraudsters were Bank of America, BMO Bank, First Central State Bank, Great Southern Bank, JP Morgan Chase Bank, PNC Bank and U.S. Bank.
Ten of Haley’s co-defendants in the fraud and money laundering case are set for trial, currently scheduled to begin on June 23, 2025. Eight co-defendants have pleaded guilty.
In a separate incident, Haley was a suspect in a shooting at a West Des Moines apartment complex in October 2023. During a search warrant at Haley’s Waukee residence, law enforcement found a stolen, loaded pistol, marijuana, cocaine and pills containing fentanyl. Haley used the stolen pistol during the shooting incident, according to court documents.
Haley has appealed his sentence to the U.S. Court of Appeals for the Eighth Circuit in St. Louis, Mo.
Contact Peter Strozniak at [email protected].
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Peter Strozniak
Credit Union Times reporter covering credit union operations, fraud, M&As, leagues, business continuity, and breaking news.
