Tens of thousands of dollars stolen from northwest Iowa banks in suspected check fraud scam

Police departments in northwest Iowa are investigating a potential fraud scheme involving more than 30 people who obtained tens of thousands of dollars by cashing fraudulent checks at banks and businesses across northwest Iowa on March 17.

The men tried, and in many cases succeeded, in cashing fraudulent checks in Rolfe, Pocahontas, Rockwell City, Sac City and Storm Lake in what Pocahontas Police Chief Alex Leu called a "sophisticated scheme."

Leu said the scheme targeted the United Bank of Iowa in each of the locations and a bakery in Storm Lake known to cash checks for migrant workers. He said the men entered the banks wearing COVID-19 masks, likely to conceal their identities, and cashed checks from Tukker and Dutchland Dairy farms, which are both based in Rolfe.

"What we've found out so far is basically they were using what we believe to be real checks, but it was that the information on those checks was forged," Leu said.

However, Leu said all of the checks at both dairy farms have been accounted for.

At first, Leu said it appeared as if it was a typical "payday at the dairies," but after more than a dozen people walked into the bank in Pocahontas, tellers started to feel something was awry.

"Our banks just don't see lots of people," he said.

In Pocahontas, Leu said the scammers got away with tens of thousands of dollars. In Rockwell, he said the suspects fled before being able to obtain money after a teller asked for identification.

In Storm Lake, 10 to 15 men obtained nearly $10,000 from Delicias Bakery, according to a release from Assistant Police Chief Patrick Diekman of the Storm Lake Police Department.

Diekman wrote in the release that Storm Lake police received a call about suspicious activity, but the suspects fled in multiple vehicles before officers arrived.

Leu and Diekman stated they working with multiple police departments to investigate. Leu also said the Pocahontas Police Department has reached out to departments in Michigan and South Dakota, where similar fraud schemes have been reported.

Diekman said there may be other victims in Iowa that have yet to be discovered.

"When they left our town, we don't have any solid information at this time where they were heading to next," he said.

Given the uncertainty, both Leu and Diekman are asking banks and businesses to be vigilant in protecting against fraud.

"Follow your procedures, be consistent with everything you do, but if you feel that there's something wrong, never be afraid to call law enforcement," Leu said.

Francesca Block is a breaking news reporter at the Des Moines Register. Reach her at FBlock@registermedia.com or on Twitter at @francescablock3.

This article originally appeared on Des Moines Register: Check fraud scheme with over 30 suspects hits banks in northwest Iowa