Handcuffs laying on top of a pile of money.
A federal judge sentenced James Harris-Bey to 54 months in prison for orchestrating a check fraud scheme that stole more than $218,000 from credit unions and banks in New York and Pennsylvania, according to court documents.
During a June 13 court hearing, U.S. District Court Judge Matthew W. Brann in Williamsport, Pa., also ordered Harris-Bey to pay $115,037 in restitution and to three years of supervised release following his prison term.
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From 2019 to 2021, federal prosecutors said Harris-Bey and four co-defendants opened credit union and bank accounts using Pennsylvania state driver’s licenses obtained with counterfeit lease agreements, fake payroll checks and falsified earnings statements. Harris-Bey was responsible for producing all of these fraudulent documents, according to prosecutors.
Posing as traveling healthcare nurses, the group deposited fake checks into the accounts and withdrew funds before the checks could be reconciled.
Federal prosecutors said in a sentencing memo to Judge Brann that the case shows a “deep incorrigibility” in Harris-Bey who was the fraud ring’s leader.
“Barely off of supervised release for a remarkably similar offense, the defendant got right back to it,” prosecutors wrote. “Within a year of completing his supervised release for bank fraud, he was transporting women to Central Pennsylvania to commit bank fraud.”
Their investigation determined the scheme caused total losses of $218,172.
According to court records, the targeted credit unions were the $770 million First Heritage Federal Credit Union in Corning, N.Y., the $5.3 billion Visions Federal Credit Union in Endwell, N.Y., the $4 billion Empower Federal Credit Union in Syracuse, N.Y., and the $199 million Chrome Federal Credit Union in Washington, Pa. The fraud ring also targeted bank branches in Pennsylvania and New York, including First Citizens Community Bank, Citizens and Northern Bank, Elmira Savings Bank, Chemung Canal Trust Company, Cattaraugus County Bank, Community Bank N/A, Five Star Bank, FNCB, Steuben Trust Company and Washington Financial Bank, court records showed.
Co-defendants were identified as Peter Douglas, Jaunea Waller-Bey, Tena Kimbrough and Bernice Kimbrough.
Douglas was sentenced to time served with no restitution after pleading guilty to bank fraud conspiracy in 2022.
Waller-Bey received a 12-month sentence and no restitution following a 2023 guilty plea to bank fraud conspiracy.
Tena Kimbrough was sentenced to time served and ordered to pay $7,894 in restitution after pleading guilty to the same charge.
Bernice Kimbrough also received time served and was ordered to pay $13,964 in restitution after pleading guilty to bank fraud conspiracy in 2023.
Peter Strozniak can be reached 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.
