DAYTON - A federal grand jury here today charged Fuad B. Nasrallah, age 44, of Kettering with operating a "check-kiting" scheme to defraud financial institutions. In two years, his scheme generated more than 4,300 transactions totaling more than $16.5 million.

Gregory G. Lockhart, United States Attorney for the Southern District of Ohio; Robert M. Burnham, Special Agent in Charge, Federal Bureau of Investigation Cincinnati Field Division; and Cromwell Handy, Special Agent in Charge, Criminal Investigation Division of the Internal Revenue Service; announced the indictment.

"The indictment alleges that Nasrallah set up a scheme involving multiple bank accounts in which he would write checks from an account with uncollected funds and deposit them into other accounts he controlled, a practice known as 'check-kiting'," Lockhart said.

Nasrallah was a Dayton-based attorney who practiced immigration law from 1996 through 1998. He was disbarred earlier this year by the Ohio Supreme Court.

During those three years, he had control over at least seven bank accounts. According to the indictment, he deposited 2,148 checks into those accounts with a face value of $8,225,936.68. The checks were drawn on the same accounts. By performing the scheme to defraud, the indictment continues, he caused approximately 4,319 financial transactions (deposits and withdrawals) totaling approximately $16,503,334.29.

The grand jury charged him with three counts each of bank fraud, money laundering, and tax evasion, one count of bankruptcy fraud, and two misdemeanor counts of failure to file federal income tax returns. Each bank fraud charge carries a maximum statutory penalty of 30 years imprisonment and each money laundering charge, a ten-year penalty. Bankruptcy fraud has a maximum five-year penalty and the penalty for tax evasion is five years plus the costs of prosecution.

The indictment says Nasrallah hid the existence of accounts at a Canadian bank and a Dayton-area bank during bankruptcy proceedings in 1996 and 1997. The indictment continues to charge Nasrallah with tax evasion from 1996-1998, including claiming a taxable income of $129,801 for 1998 when he knew his real taxable income was substantially in excess of that amount. The indictment includes two misdemeanor charges of failure to file a federal income tax return for 1997 and 1998.

Nasrallah is considered a fugitive and a warrant has been issued for his arrest.

Lockhart commended the investigative efforts of the FBI and the IRS Criminal Investigation Division.