(La Porte County, IN) - Some workers at a fast food restaurant were stealing credit/debit card numbers from customers and using the La Porte County Jail as part of their fraudulent money-laundering and generation scheme.
Kristin Vanschoyck, 35, Darrien Ward, 20, and Prince Arnold, 21, have been charged in La Porte Circuit Court with Level 5 Felony Fraud on a Financial Institution and Level 6 Felony Criminal Organization Activity.
They were employed at the Hardee's restaurant at 5223 Franklin Street in Michigan City where, in August and September, Vanschoyck allegedly photographed and videotaped the numbers of credit/debit cards from drive-thru customers.
She then gave the numbers to Ward and Arnold, who used them to purchase clothing online and place anywhere from $1,000 to $4,000 into the jail accounts of several inmates, according to court documents.
La Porte County Police Chief of Detectives Andy Hynek said the internet was also used to place money into the jail accounts inmates use to purchase food and other items from the commissary. Another alleged conspirator in the crime, whose name has not been released, went to the jail and posted bond for the inmates in cash.
Before being released, Hynek said each inmate was issued a debit card to use on the outside for tapping into the money from their jail accounts, which is standard procedure for all offenders making bail.
Right away, the inmates were taken to an ATM to use the cards to withdraw money from their jail accounts as their cut for taking part in the scheme. The inmates then gave the cards to the employees from Hardee's, who then used them to tap into the funds still left in their jail accounts, court documents showed.
“So, basically, they laundered money through the jail system. They put fraudulent money in and got clean money out,” Hynek said.
Hynek said only inmates with low bond amounts were targeted to maximize profit margins. Aanother offender helped recruit inmates to take part in the alleged criminal activity
Hynek said he began looking into the allegations after the victims discovered the withdrawals on their balance statements and contacted their respective banks. The banks then notified the company that operates the jail inmate account system.
According to court records, the bonded-out inmates charged with Fraud and Criminal Organization activity were Moesla Payne, Lawrence Armstrong, Carissa Bealor, and Hollie Lachapell.
All of the individuals charged are from Michigan City, except for Lachapell and Bealor, who are from LaPorte.
Hynek said as much as $15,000 was stolen from all of the victims in the bond posting scheme. However, he said the victims are in the process of having the stolen funds placed back into their accounts by their banks. Two other inmates bonded out have not been charged yet, due to lack of proof they knowingly took part.
Changes in how the jail inmate account system is operated are being discussed, so as to prevent another such occurrence in the future.
