KC Reporter

A man formerly residing in Kansas City, Missouri, has admitted in federal court to engaging in a conspiracy aimed at defrauding two local banks. Fremon Reaves Jr., 22, confessed to his participation in the scheme when he appeared before Magistrate Judge Jill A. Morris, pleading guilty to one count of conspiracy to commit bank fraud.

Reaves Jr.'s guilty plea acknowledged his involvement in an arrangement to defraud FDIC-insured banks. The case came to light on July 1, 2022, after an investigator from a local bank notified the FBI in Kansas City of a suspected fraudulent check scheme circulating in the area. The scheme involved recruiting individuals through social media to hand over their debit cards and PINs voluntarily. With this information, fraudsters deposited fake checks into victim accounts. Observations revealed that similar check designs and values were employed repeatedly, and surveillance footage captured Reaves Jr. and another individual making these deposits.

In addition to the deposits, the scheme involved making ATM withdrawals, debit card purchases, and money transfers via Cash App. The FBI's investigation uncovered evidence that the operation targeted two FDIC-insured banks in Kansas City, running from April 2022 to at least September 2022. The scheme resulted in actual losses nearing $90,000, with potential losses estimated at $400,000.

Another individual, Gerald Humphreys Jr., has also admitted to the same crime, entering his plea on March 28 and awaiting sentencing.

Reaves Jr. could face a federal prison sentence of up to 30 years without parole. This maximum statutory sentence is set by Congress, though the court will determine the actual sentence based on advisory guidelines and other factors. A hearing for sentencing will be scheduled after a presentence investigation by the United States Probation Office.

Assistant U.S. Attorney David Ketchmark is leading the prosecution of this case, which was investigated by the FBI with support from criminal investigators from the defrauded banks.