NEWARK, N.J.: Federal prosecutors announced three more guilty pleas Thursday in a bank fraud case that affected banks in multiple states.
The three, from New York, Ohio and New Jersey, pleaded guilty to conspiracy to commit bank fraud and face sentencing in September.
According to the U.S. attorneys office in Newark, the trio and others scammed the banks and electronic merchant processors by creating sham companies and using them to issue checks to other shell companies associated with the scheme, without the funds to back them up.
They also allegedly used ATMs and bank tellers to withdraw money before the banks and merchant processors could recognize the money in their accounts was the result of fraudulent transactions.
The scheme caused losses of approximately $3.5 million to entities in New Jersey, New York, Pennsylvania, Maryland, Virginia, and Michigan, according to prosecutors.
Erm Ayaz, 36, of Brooklyn, New York, pleaded guilty by videoconference Thursday. Thirty-two-year-old Syed Abbas of Westerville, Ohio, and 35-year-old Habib Majid of North Brunswick, New Jersey, pleaded guilty in the last week.
Four others connected to the scheme had previously pleaded guilty.
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