WATERLOO, IOWA (AP) -- Waterloo police say they have arrested 18 people in connection with a check-writing scheme that allegedly defrauded banks of about $125,000.
According to authorities, the suspects face various charges, including unlawful activity, theft and money laundering.
Authorities say members of the group opened accounts at various banks to get starter checks and debit cards. They allegedly swapped checks and used the "float" delay in bank transactions to make fake deposits that artificially inflated the value of the accounts.
The accused allegedly used the debit cards and checks to get cash, which was laundered through U.S. Postal money orders, and make purchases.
Authorities say they learned of the scheme when officials at Regions Bank became suspicious. According to court records, other banks affected by the scheme include Wells Fargo, Veridian Credit Union and Iowa Community Credit Union.
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