Five Charged in $1.05 Million U.S. Treasury Check Scheme Involving Money Laundering
Five Houston-area residents have been charged in a 33-count federal indictment over an alleged scheme to obtain and move proceeds from a counterfeit U.S. Treasury tax refund check worth $1,052,615.97, according to the U.S. Attorney’s Office for the Southern District of Texas.
The indictment was returned on July 22, 2026 and has now been unsealed after the defendants made their initial court appearances. Those charged are Torik M. Blade, 39; Kendra L. Folkes, 37; Rickelle D. Taylor, 38; Raven N. Morris, 34; and Stephen G. James, 42. The charges include passing a counterfeit Treasury check, bank fraud, conspiracy and money laundering.
Business account allegedly used to receive counterfeit-check proceeds
Prosecutors allege that Blade allowed an unidentified person to deposit the counterfeit Treasury tax refund check into his business bank account. After the funds entered the account, the defendants allegedly attempted to obtain and move the proceeds through several channels.
According to the indictment, the alleged methods included purchasing and cashing cashier’s checks funded by the counterfeit-check proceeds, transferring money between financial institutions and making cash withdrawals. These steps form the money-laundering element of the case by allegedly moving and converting funds generated through the underlying counterfeit-check and bank-fraud scheme.
The case illustrates how a legitimate business account and ordinary banking instruments such as cashier’s checks and interbank transfers can allegedly be used to give fraud proceeds a more routine transactional appearance and distribute the funds across different channels.
Potential penalties and procedural status
If convicted, Blade faces up to 20 years in federal prison and a possible $250,000 fine for passing a counterfeit Treasury check, and up to 30 years and a $1 million fine on each bank-fraud count. The conspiracy and money-laundering counts each can carry up to 20 years in prison and fines of up to $500,000. The other defendants face similar maximum penalties depending on the counts against them.
The investigation was conducted by the Treasury Inspector General for Tax Administration, IRS Criminal Investigation and the U.S. Secret Service.
The charges remain allegations. An indictment is not evidence of guilt, and all five defendants are presumed innocent unless convicted through due process of law.
