'Elaborate Bank Fraud Scheme' That Bilked $5.3M Lands LA Man In Prison

LOS ANGELES, CA — A Los Angeles man has been sentenced to nearly five years in prison for his part in what prosecutors called an "elaborate bank fraud scheme" that involved stolen checks and recruiting accomplices through Instagram, according to the U.S. Attorney's Office.

Jose Luis Edeza Jr., 31, of Sunland, was sentenced to four years and nine months in federal prison last week after he plead guilty in May to conspiracy to commit bank fraud and aggravated identity theft, prosecutors said.

From October 2020 to August 2023, Edeza and his co-conspirators executed a scheme where they stole checks from the mail and then contacted the account holders through social media. On platforms including Instagram, they'd solicit people to provide their bank information with the promise they'd receive a cut of any stolen funds, prosecutors said.

"Bank account holders responded to the social media advertisements and provided members of the conspiracy with the information requested on the ads, including bank account numbers, PIN numbers, debit cards and online banking log-in information," the U.S. Attorney's Office wrote.

Edeza and his co-conspirators deposited the stolen checks into the bank accounts. In most cases the checks were falsely endorsed with the payee's name; in other cases the checks were altered to make the payee name line up with the bank account where the check was deposited, prosecutors said.

During the scheme, Edeza and co-defendant Carlos Corona, 36, of South Los Angeles, attempted to steal at least $5.3 million from the affected banks and credit unions, ultimately causing actual losses of at least $2.7 million, according to the U.S. Attorney's Office.

Corona also pleaded guilty to federal charges and is scheduled for sentencing on Aug. 19 in LA federal court.

City News Service contributed to this report.