The Justice Department charged Carlos Ibarra, a former Houston employee of J.P. Morgan Chase Bank, with three counts of bank fraud and seven counts of money laundering.
Ibarra allegedly purchased cashier’s checks on an account at Chase that belonged to a deceased individual. According to the indictment, he then gave those checks to others for them to deposit into their own bank accounts. The recipients then allegedly made wire transfers and obtained cashier’s checks as instructed by Ibarra. The scheme cost the bank nearly $780,000.
David Kwok is an expert on white collar crime at the University of Houston Law Center.
“His case is a relatively pure bank fraud case. Bank fraud is oftentimes alleged in collaboration, if you will, with other forms of financial crimes. Most of the media attention has focused primarily on mortgage-style bank frauds of late.”
If convicted on all counts, Ibarra faces up to 230 years in prison, as well as a maximum fine of $6.5 million.