Eight indicted for running counterfeit check ring

KANSAS CITY, Mo. -- Eight people have been arrested on federal charges stemming from a two-state counterfeit check writing scheme that targeted local businesses, including the Kansas City Country Club and Columbian Title.

U.S. Attorney Eric Melgren said Tuesday 20 other people had been arrested on local charges in connection with the scheme, which involved 18 cities in Kansas and Missouri from October 2002 to January 2003.

William Cunningham, 29, of Kansas City, was accused in the 23-count indictment of using a computer to make the counterfeit checks drawn on business accounts at local banks.

Other businesses targeted in the scheme included the Woodside Tennis and Health Club of Kansas City; the Jewish Community Campus, Overland Park, Kan.; and the Concannon Group of Companies, Inc., of Kansas City.

Also charged in the federal indictment were: Derek Mayfield, 32; James Hughes, 23; Vernell Murphy, 53; Michael Clemmons, 30; Yixin Zhu, 42; Joegina Davis, 22, all of Kansas City, Mo.; and Joseph Flowers, 28, of Kansas City, Kan.

If convicted, each face a maximum of five years in federal prison without parole for conspiracy, plus a maximum of 10 years on each count for those charged with making or passing counterfeit checks.

Melgren said about 94 checks were confiscated during the eight-month investigation and ranged in amount from $5000 to $100,000; the checks totaled about $500,000.

"It is very important that we get the word out to the community to be alert to this kind of fraud," Melgren said.

"Businesses need to know that current technology makes it possible for someone sitting at a computer to generate counterfeit checks that appear authentic.

"The public should on the lookout for large checks being passed late in the day," Melgren said.

Melgren said area authorities were also continuing to work with officials in other Midwestern cities to determine if the arrests could help detectives working on similar cases.