A Lancaster, California man has been sentenced to 57 months in prison followed by three years of supervised release for his involvement in a money order forgery scheme. Chief United States District Judge Andrew P. Gordon handed down the sentence to Sterlyn Lee Smith Jr., who was found guilty of depositing over $1.2 million in forged money orders into bank accounts and subsequently withdrawing cash.
Court documents revealed that between July 31, 2013, and February 13, 2019, Smith, aged 49, along with numerous accomplices, executed a scheme involving altered money orders. They purchased these money orders from United States Post Offices in California and Nevada and then fraudulently altered them to reflect higher amounts. The forged money orders were deposited into bank accounts under other people's names at two banks located in Nevada and California. Cash withdrawals were made before the banks could detect the forgery.
The six-year fraudulent operation involved more than 1,200 forged money orders totaling over $1.2 million. Smith pleaded guilty to two counts of bank fraud corresponding to each bank he targeted. Besides serving time in prison, he has been ordered to pay restitution amounting to $432,482.63.
The announcement was made by Acting United States Attorney Sue Fahami for the District of Nevada and Inspector in Charge Glen Henderson of the United States Postal Inspections Service (USPIS), Phoenix Division.
The case was investigated by the USPIS with Assistant United States Attorneys Kimberly Frayn and Justin Washburne leading the prosecution.
For those wishing to report a fraud complaint, they are encouraged to contact the U.S. Postal Service Fraud Complaint Hotline at 1-800-372-8347 or visit the USPIS website at www.usps.com/postalinspectors.