Texas Man Sentenced to 27 Months for Bank Fraud

A Texas man is heading to federal prison for a clever yet short lived check fraud scheme. Byron Demetrius Franklin, a 61 year old resident of Beaumont, pleaded guilty to bank fraud after altering a United States Treasury check to fake a massive deposit. He tried the deposit at a Houston Walmart ATM in January 2025, routing the funds into his USAA account.

After depositing the modified check, Franklin contacted the bank to report an error. This move tricked the system into giving him credit for an extra large sum while the original check went through verification. He wasted no time, making several ATM cash withdrawals around Beaumont over the next couple of days before the bank caught on and froze the account.

Federal prosecutors stated that the scheme fell apart quickly once investigators spotted the altered check. The U.S. Secret Service and USAA worked together on the case, leading to a 27 month federal prison sentence for Franklin.

This case highlights the ongoing risks banks face from check fraud and the quick response times of financial institutions. USAA has reminded customers of its security checks to stop similar fraud attempts in the future. While this incident does not directly impact crypto markets, it serves as another reminder of tighter security across all traditional banking channels.