Massachusetts Men Plead to Bank Fraud And Money Laundering Scheme In MA And RI

BOSTON, MA — Two Massachusetts men pleaded to a bank fraud and money laundering scheme targeting residents of the Bay State and Rhode Island.

Victor Kolawole, 26, and Keith Wainaina, 24, pleaded guilty to conspiracy to commit bank fraud, bank fraud and conspiracy to commit money laundering.

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Kolawole, a resident of Brockton, was scheduled to be sentenced July 23. The sentencing for Wainaina, a resident of Lowell, was scheduled for Sept. 9.

Four others were arrested in July along with Kolawole and Wainaina, according to the U.S. Attorney's Office.

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"Beginning no later than December 2022, Kolawole and Wainaina conspired with Phalentz Vernot and others to defraud local banks," the release said.

"Specifically, Vernot obtained, without authorization, the names, dates of birth, Social Security numbers and bank account numbers of customers of various local banks," per the release. "Vernot and Wainaina then identified individuals to pose as these customers and procured fake identification documents with the victim customers’ names but the imposters’ photos. Vernot and Wainaina then drove the imposters to banks, where the imposters presented the fake identification documents and withdrew large sums from the victim customers’ accounts in the form of Cashier’s checks."

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The two men then deposited those checks into their own bank accounts and used the cash to buy additional cashier’s checks payable to Vernot, according to the release.

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"Vernot used some of the money to pay the individuals posing as bank customers as well as bank insiders who helped to facilitate their scheme, including by intentionally skipping customer verification protocols," the release said. "Wainaina deposited, or attempted to deposit, more than $762,000 in Cashier’s checks drawn on victims’ accounts into bank accounts he controlled. Kolawole deposited approximately $373,000 in Cashier’s checks drawn on victims’ accounts into bank accounts he controlled."

Vernot pleaded guilty in December, according to the release, his sentencing was scheduled for July 22.

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