A Pennsylvania parts supplier has lost more than $50,000 after a payment check was intercepted, altered and cashed in Nevada.
The $50,232 check from American Hardware was intended for a Georgia supplier but had its payee line changed and was cashed in Las Vegas. Court documents indicate that Cassandra A. Medina, 33, faces felony charges including identity theft and unauthorized use of an access device after the payee was changed from Jones Stephens Corporation to her name.
According to investigators, Medina made multiple wire transfers after cashing the altered check. No other individuals have been charged in connection with the incident.
Kevin Blum, vice president of sales at American Hardware, described the financial impact on the company. Insurance covered only $15,000 of the loss before dropping the company's coverage. The remaining losses have affected the supplier's purchasing capacity and payroll operations.
This was not the first attempted fraud targeting the company this year. An earlier incident involved a check altered from $35 to $3,500, but the firm's accountant identified and canceled it before it was processed.
In response to the fraud, American Hardware has switched to electronic bank transfers for all supplier payments, despite the higher associated costs.
