Charges: Fraud Scheme Costs Rochester Financial Institution Thousands in Losses
Rochester, MN (KROC-AM News)- The Olmsted County Attorney’s Office is charging a Stewartville man in connection to a scheme that cost a Rochester-based financial institution thousands of dollars.
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He’s accused of conducting the fraud between February and August of last year. The charging document was filed in Olmsted County Court on Tuesday.
The Rochester Police Department began investigating the reported fraud on August 15, 2023.
Stewartville Man Accused of Swindling Thousands from Rochester Credit Union
21-year-old David Lloyd Black was seen depositing four checks for a combined total of $2,850 from a bank account into an account at a credit union in Rochester then withdrawing $1,500 in cash and sending himself a $1,350 Cash App payment, the criminal complaint says.
The checks were later returned for insufficient funds after the withdrawals. A fourth check written out for $350 was also returned for insufficient funds after being withdrawn three days after the first set of withdrawals at the same credit union, the charges say.
Over the course of the investigation, law enforcement learned Black had conducted a similar scheme at the same credit union in late February and early March that cost the institution an estimated $4,540 in losses, the complaint says.
The scheme was shut down after Black admitted to the fraud while being contacted by an employee at the credit union, the complaint says.
Last July, a person claiming to be a friend of Black’s opened an account at the same credit union in Stewartville so Black could deposit and cash checks.
Black again deposited bad checks in the friend's account and withdrew the money before the checks were deemed insufficient funds, the charges say.
Black admitted to conducting the fraud scheme while being interviewed by a police detective last August. In all the scheme cost the credit union $11,437.86, according to the court document.
Black has been charged with a count of theft by swindle and a count of issuing a dishonored check. His first appearance in the fraud case is set for next month.
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