BUFFALO, N.Y. — A former Buffalo resident pleaded guilty on Tuesday to orchestrating a scheme that defrauded two banks out of nearly half a million dollars. Joshua Parra, 32, who now lives in Melbourne, Florida, appeared before U.S. Magistrate Judge Michael J. Roemer and admitted to committing bank fraud.
Federal prosecutors said Parra’s scheme occurred between December 2021 and January 2022. Assistant U.S. Attorney Charles M. Kruly stated that Parra exploited his connection with a financial technology company, referred to as Fintech Company 1, by creating 94 false disputed transactions on behalf of 11 of its customers. Each of these fraudulent disputes involved transfers of $5,000, resulting in a combined loss of approximately $459,000 to Bancorp and Stride Bank.
“None of the 11 customers’ accounts with Fintech Company 1 had transactions that would justify such disputes,” Kruly noted, explaining the basis of the charges. The fraudulent activity prompted both Bancorp and Stride Bank to release funds from their settlement accounts into accounts controlled by Fintech Company 1’s customers.
The case was investigated by the Internal Revenue Service’s Criminal Investigation Division and the Federal Bureau of Investigation. Both agencies were led by Special Agent in Charge Thomas Fattorusso of the IRS and FBI Special Agent-in-Charge Miraglia, according to the U.S. Attorney’s Office.
Parra faces up to 30 years in prison and a $1 million fine at sentencing, which will be scheduled at a later date.