Ricardo Castro Murillo, a 34-year-old Honduran national, has been sentenced to 37 months in prison after pleading guilty to conspiracy to commit bank fraud in two separate cases. The sentencing was handed down by United States District Court Judge Philip P. Simon, according to an announcement from Acting United States Attorney M. Scott Proctor.
Following his prison term, Castro Murillo will serve one year of supervised release and must pay $533,043 in restitution. Authorities stated that he does not have legal status in the United States and will face removal proceedings after completing his sentence.
Court documents detail that on January 11, 2023, Castro Murillo and co-conspirators used fake identification cards to cash 169 fraudulent paychecks totaling $233,569 at three branches of the same bank in the Northern District of Indiana. These checks were made to appear as if they had been issued by a local dairy farm operator.
Nearly six months later, on June 23, 2023, the group repeated their scheme in Oklahoma. They used fake IDs to cash 178 fraudulent paychecks worth $299,474 at five branches of the same bank and three check-cashing businesses in the Eastern District of Oklahoma. The checks were designed to look like they came from a building materials supply company based there.
“Castro Murillo participated in a far-reaching conspiracy that caused major financial harm to community banks and small businesses across the United States. Due to the unwavering efforts and collaboration between federal, state, and local law enforcement, Castro Murillo was brought to justice for his role in this scheme,” said Proctor. “The sentence imposed by the court sends a message that there are real consequences for engaging in fraud, particularly in northwest Indiana.”
“The illicit actions of co-conspirators to commit bank fraud as they travel throughout the United States will not be tolerated,” said Matthew J. Scarpino, special agent in charge of Homeland Security Investigations (HSI) in Chicago. “HSI will continue to partner with our fellow law enforcement agencies to disrupt these types of offenders and hold them accountable for their crimes.”
“Sophisticated fraud operations like this require investigative teamwork that spans state lines,” said Sergeant Jeremy Piers, Public Information Officer for the Indiana State Police. “From the first lead to the final arrest, our detectives, troopers, and support staff worked relentlessly alongside federal, state, and local partners to track the suspects’ movements, gather critical evidence, and bring this scheme to an end. This outcome reflects countless hours of coordination and determination, and it sends a clear message: when criminal activity crosses into Indiana, we will work tirelessly with our partners to protect our communities, our businesses, and our financial institutions.”
A co-conspirator in the case, Luis Banegas Rodriguez, previously received a sentence of 27 months for his involvement.
The investigation was led by Homeland Security Investigations along with assistance from several agencies including the Federal Bureau of Investigation (FBI), United States Secret Service (USSS), Indiana State Police (ISP), Benton County Sheriff’s Department (Indiana), Benton County Prosecutor’s Office (Indiana), Poteau Police Department (Oklahoma), Texas Department of Public Safety (DPS), Travis County Sheriff’s Office (Texas), and Houston Police Department (Texas). The prosecution team included Assistant United States Attorney Steven J. Lupa from Northern District of Indiana as well as Assistant U.S. Attorneys Kara Traster and Jordan Howanitz from Eastern District of Oklahoma.
