Washington business loses $50,000 in check-washing scheme
Check mailed to Georgia supplier was redirected to Las Vegas woman
A Nevada woman is charged in a check-washing scheme in which she allegedly took possession of and altered a check from a Washington mobile home and recreational vehicle parts supplier, bilking the company out of more than $50,000 in funds.
Cassandra A. Medina was charged last week by city police after investigators said she came into possession of the $50,232 check from American Hardware that was sent in the mail to a Georgia company, but instead ended up in Las Vegas and manipulated in order for her to cash it.
A worker for the hardware and parts supplier at 79 Stewart Ave. in the city dropped the check off on March 9 at a postal box next to Washington & Jefferson College’s student union – and across the street from the campus police station – but it apparently never made its destination postmarked for Atlanta. But a week later, the check ended up in Las Vegas and the “Pay To The Order Of” line had been changed from Jones Stephens Corporation to be made payable to Medina, who allegedly cashed it at a bank in Nevada, according to court documents.
American Hardware’s owners were later notified by Jones Stephens that the company never received the check, prompting them to review their accounting records and learned the check had instead been cashed by a woman and not their inventory supplier.
Washington and W&J police reviewed surveillance videos showing the mailbox on campus, but did not notice anyone “fishing” for mail at the time, according to court documents. Investigators with the U.S. Post Office became involved, although it’s not clear how or where the check was redirected from its intended destination.
Court documents indicated Medina made multiple wire transactions after allegedly cashing the check and sent money to other individuals, although no one else has been charged in the check-cashing scheme.
Kevin Blum, who is vice president of sales at American Hardware, said the company only received $15,000 in reimbursement from its insurance carrier, which promptly dropped their business following the theft. The loss of a substantial amount of money, coupled with a flood earlier the year, has taken a bite out of the company’s business, he said.
“It really hurt our business,” Blum said in an interview Thursday. “It takes a toll on our purchasing (ability). Something like that is a big hit. I’m scraping for payroll. It hurts all the way around.”
Blum said something similar happened earlier this year when someone intercepted another check written for $35 and changed it to $3,500, although the company’s accountant caught the fraud and had the check canceled within a 10-day window. The company has since changed its protocol in how it sends payments to suppliers, using an electronic method through its bank which is more costly to the business, but guarantees the money cannot be redirected to would-be thieves.
“At least it’s peace of mind,” Blum said.
Medina, 33, is facing felony charges of knowledge that property is proceeds of an illegal act, identity theft and access device issued to another who did not authorize use. Charges were filed Sept. 3 at District Judge Kelly Stewart’s office in Washington, although it was not known if Medina had been arrested in Nevada, where Las Vegas Metropolitan police were assisting Washington police in the investigation.
An email to a Postal Service spokesman was forwarded to its investigative department, which did not immediately respond to a message seeking comment on how the check was redirected.