'Money mule' arrested in theft of more than $500,000

A Dunklin County, Missouri, woman is accused of being a "money mule" who was used to defraud a victim of more than a half-million dollars.

Sheri L. Reeves, 53, of Kennett, Missouri, appeared Wednesday April 12, in U.S. District Court in Cape Girardeau to face charges accusing her of aiding in the theft of $565,000 from a victim located in Texas. She was indicted by a grand jury April 4 on one count each of bank fraud, wire fraud and conspiracy to commit wire and mail fraud, according to a news release from the U.S. Attorney's Office.

She pleaded not guilty in court Wednesday.

The indictment said Reeves acted as a money courier or "money mule", someone who transfers money obtained by fraud to others.

On June 9, 2020, Reeves was accused of opening an account at a Bank of America branch in Jonesboro, Arkansas, that she would later use to receive the proceeds of various fraud schemes executed by others. She also added the name of another person to the account. The indictment said that person was the victim of an account take-over fraud, in which conspirators used fraudulently obtained account information to access the account and transfer $565,000 to Reeves' account.

Reeves allegedly sent the proceeds from the various frauds to others using cashier's checks obtained in Tennessee and Arkansas and via a CoinFlip cryptocurrency ATM in Dunklin County. She also is accused of sending the account information to others and withdrawing or attempting to withdraw the proceeds in cash or by check.

The bank fraud charge is punishable by up to 30 years in prison, a fine of up to $1 million, or both. The other charges are punishable by up to 20 years in prison and a $250,000 fine.

The case was investigated by the FBI. Assistant U.S. Attorney Paul Hahn is prosecuting the case.

Anyone who believes they are participating in a money mule scheme may contact the FBI's Internet Crime Complaints Center at www.ic3.gov or contact a local FBI office.