Three Honduran Nationals Sentenced to Prison for Their Roles in a Bank Fraud Conspiracy
HAMMOND – Three Honduran nationals are the latest co-conspirators to be sentenced to prison for their roles in an expansive bank fraud conspiracy resulting in significant losses to small businesses and community banks in more than a dozen states, announced Acting United States Attorney M. Scott Proctor. The sentences were imposed by United States District Court Judge Philip P. Simon at hearings held on December 12 and 15, 2025.
Carlos Aquino Sosa, 26 years old, of Honduras, was sentenced to 41 months in prison followed by 1 year of supervised release after pleading guilty to two counts of conspiracy to commit bank fraud. He was also ordered to pay $533,043 in restitution.
Edwin Palacios Sosa, 27 years old, of Honduras, was sentenced to 27 months in prison followed by 1 year of supervised release after pleading guilty to two counts of conspiracy to commit bank fraud and one count of illegal re-entry. He was also ordered to pay $533,043 in restitution.
Delvin Velasquez Romero, 33 years old, of Honduras, received a time-served sentence dating back to July 8, 2024 (approximately 17 months in custody) followed by 1 year of supervised release after pleading guilty to one count of conspiracy to commit bank fraud and one count of illegal re-entry. He was also ordered to pay $233,569 in restitution.
These defendants have no legal status within the United States and will each be subject to a separate and immediate removal process upon release from prison.
According to documents in each case, on January 11, 2023, Aquino Sosa, Palacios Sosa, Velasquez Romero, and their co-conspirators used fake identification cards to cash 169 fraudulent paychecks totaling $233,569 at three branches of the same bank in the Northern District of Indiana. The fraudulent paychecks were designed to look like they had been issued by a company that operates dairy farms in the Northern District of Indiana.
Almost six months later, on June 23, 2023, Aquino Sosa, Palacios Sosa, Velasquez Romero, and their co-conspirators used fake identification cards to cash 178 fraudulent paychecks totaling $299,474 at five branches of the same bank and three check cashing businesses in the Eastern District of Oklahoma. The fraudulent paychecks were designed to look like they had been issued by a building materials supply company in the Eastern District of Oklahoma.
“Aquino Sosa, Palacios Sosa, and Velasquez Romero participated in a far-reaching conspiracy that caused major financial harm to small businesses and community banks across the United States. Due to the unwavering efforts and collaboration between federal, state, and local law enforcement in multiple jurisdictions, these defendants were brought to justice for their respective roles in this scheme,” said Proctor. “The sentences imposed by the court send a message that there are real consequences for engaging in fraud, particularly in northwest Indiana.”
“The illicit actions of co-conspirators to commit bank fraud as they travel throughout the United States will not be tolerated,” said Matthew J. Scarpino, special agent in charge of Homeland Security Investigations (HSI) in Chicago. “HSI will continue to partner with our fellow law enforcement agencies to disrupt these types of offenders and hold them accountable for their crimes.”
“Sophisticated fraud operations like this require investigative teamwork that spans state lines,” said Sergeant Jeremy Piers, Public Information Officer for the Indiana State Police. “From the first lead to the final arrest, our detectives, troopers, and support staff worked relentlessly alongside federal, state, and local partners to track the suspects’ movements, gather critical evidence, and bring this scheme to an end. This outcome reflects countless hours of coordination and determination, and it sends a clear message: when criminal activity crosses into Indiana, we will work tirelessly with our partners to protect our communities, our businesses, and our financial institutions.”
Co-conspirators Luis Banegas Rodriguez and Ricardo Castro Murillo were previously sentenced to 27 and 37 months in prison, respectively, for their roles in this scheme.
These cases were investigated by Homeland Security Investigations, the Federal Bureau of Investigation, the United States Secret Service, and the Indiana State Police, with valuable assistance provided by the Benton County (Indiana) Sheriff’s Department, the Benton County (Indiana) Prosecutor’s Office, the Poteau (Oklahoma) Police Department, the Texas Department of Public Safety, the Travis County (Texas) Sheriff’s Office, the Houston (Texas) Police Department, the Nebraska State Police, and the Stanton County (Nebraska) Sheriff’s Office. The cases were prosecuted by Assistant United States Attorney Steven J. Lupa from the Northern District of Indiana and Assistant United States Attorneys Kara Traster and Jordan Howanitz from the Eastern District of Oklahoma.
