Federal financial crime investigations can extend beyond the person who allegedly stole money in the first place. A person who deposits a stolen check, establishes an account used to receive criminal proceeds, or transfers funds for the purpose of concealing their origin may face separate federal charges. Bank fraud and money laundering laws can therefore become significant issues when prosecutors believe financial accounts or transactions were used to facilitate or disguise the movement of stolen funds.
A recent federal case in Boston illustrates how these allegations can develop. According to federal prosecutors, a Quincy man, Eric Banks, obtained a stolen U.S. Treasury check worth more than $1.1 million that had been issued to a New York company. Prosecutors alleged that Banks created a Massachusetts entity using the same name as the legitimate company, opened a bank account for that entity, and deposited the check. The government further alleged that he carried out transactions intended to conceal the source of the money. Banks also created another entity and account, which prosecutors said received more than $1.3 million transferred from other individuals who had allegedly obtained and deposited stolen Treasury checks. Banks pleaded guilty to one count of bank fraud and five counts of money laundering and was sentenced on March 4, 2026, to 14 months in federal prison followed by three years of supervised release.
What Is Bank Fraud?
Under federal law, bank fraud generally involves knowingly executing or attempting to execute a scheme to defraud a financial institution or to obtain money or property under the control of a financial institution through false or fraudulent representations. A conviction under 18 U.S.C. § 1344 can carry a maximum penalty of up to 30 years in federal prison and a fine of up to $1 million.
The use of a bank account to deposit a fraudulent or stolen check can therefore create substantial criminal exposure, particularly when prosecutors contend that the account was established or used as part of a larger scheme. The circumstances surrounding the account, the person’s knowledge, communications with others, and the nature and movement of the funds can all become important issues in a federal investigation.
When Can Moving Money Become Money Laundering?
Money laundering charges can involve transactions involving proceeds of unlawful activity when the government alleges that the person knew the money represented criminal proceeds and conducted the transaction with an intent to promote the underlying activity or conceal or disguise the nature, source, ownership, location, or control of the proceeds. Federal law expressly includes deposits, withdrawals, transfers, and other transactions involving financial institutions within the definition of a transaction.
This means that a person does not necessarily have to be accused of personally stealing the original funds to face a money laundering investigation. The government’s allegations may instead focus on what the person knew about the money and why the person deposited, transferred, withdrew, or otherwise handled it. Depending on the specific subsection charged, federal money laundering violations can carry penalties of up to 20 years in prison, along with substantial fines.
The Banks case was part of a broader federal investigation involving stolen U.S. Treasury checks and seven other defendants who were separately charged with alleged theft of government funds or bank fraud. Federal agencies involved included IRS Criminal Investigation, the Treasury Inspector General, and the U.S. Postal Inspection Service.
Being accused of depositing or transferring money connected to alleged criminal activity does not by itself establish guilt. Federal prosecutors must prove the required elements of the specific offense beyond a reasonable doubt, including the applicable knowledge and intent requirements. Anyone contacted by federal investigators or accused of using a bank account to receive or transfer allegedly stolen funds should consider speaking with an experienced federal criminal defense attorney before making statements or taking further action concerning the investigation.
Experienced Criminal Defense Representation in Massachusetts
If you have been charged with a serious crime or believe you may be the target of a criminal investigation, obtaining experienced legal representation early can be critical. Attorney Francis T. O’Brien, Jr. brings more than 30 years of criminal defense experience to each case and has represented clients facing a wide range of state and federal criminal charges, including federal conspiracy, fraud and white-collar crimes, drug offenses, OUI and serious motor vehicle charges, assault, firearms offenses and other complex criminal matters.
Attorney O’Brien understands that every criminal case is different and requires a defense strategy tailored to the facts, the evidence and the individual circumstances of the client. Whether a case involves challenging the government’s evidence, constitutional and search-and-seizure issues, negotiating a resolution or preparing for trial, O’Brien Law Boston provides experienced representation focused on protecting the client’s rights and achieving the best possible outcome.
With offices in Boston and Hingham, O’Brien Law Boston represents individuals facing criminal charges throughout Massachusetts, including the South Shore and Greater Boston. If you have been arrested, charged with a crime, or are concerned that you are under investigation, contact O’Brien Law Boston at 617-512-0939 to discuss your case.