Man Sentenced to 3 Years in Prison for Check Cashing Schemes - After Initial Arrest for Bank Fraud

Man Sentenced to 3 Years in Prison for Check Cashing Schemes - After Initial Arrest for Bank Fraud

A Providence man who admitted to participating in check cashing fraud schemes, and who continued to do so while on federal pre-trial release after his arrest on related charges, was sentenced on Thursday to three years in federal prison, announced United States Attorney Zachary A. Cunha.

About Case

Rachon Waite, 32, previously admitted to a federal judge that, from December 2020 to June 2021, and then again, after his August 2, 2021, arrest, from October 2021 through April 2022, he recruited individuals on social media to use their personal identifying information and bank accounts to cash fraudulently-created checks. 

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Members of the conspiracy working with Waite stole checks of multiple Rhode Island and Massachusetts business from the U.S. Mail stream and then used the information from those checks to create fraudulent checks using the names and personal identifying information of individuals recruited by Waite. 

Waite, his co-conspirators, and, in some instances, the individuals Waite recruited deposited these fraudulent checks in their bank accounts and quickly withdrew the funds, or attempted to, before banks determined that the deposited checks were fraudulent. In other instances, individuals recruited by Waite cashed the fraudulent checks.

He was first arrested on a federal complaint in August 2021 for participating in the fraudulent check cashing scheme. He was released on bail and placed on pretrial supervision by the Court. 

Despite this, in October 2021, Waite recommenced his role in the check cashing fraud scheme. On May 24, 2022, Waite was charged for his role in the fraudulent check cashing activity that followed his release on bail on the first complaint.

According to information presented to the court, criminal conduct attributed to the defendant caused a loss to banks and businesses totaling more than $169,000. Waite pleaded guilty on August 22, 2022, to conspiracy to commit bank fraud, aggravated identity theft, and commission of an offense while on release. 

He was sentenced Thursday by U.S. District Court Judge William E. Smith to thirty-six months in federal prison to be followed by three years of federal supervised release. Restitution will be determined at a later date.

The case was prosecuted by Assistant United States Attorney Denise M. Barton.

The matter was investigated by the FBI and the Bristol and Narragansett, RI, and Wrentham, MA, police departments.