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12/14/2022
Michigan Man Charged with Operating Check-Kiting Scheme that Caused Loss of Nearly $150 Million
Justice.gov
CLEVELAND – Najeeb Khan, 69, of Edwardsburg, Michigan, was charged in a Bill of Information today with operating a long-running check-kiting scheme that caused a financial loss of nearly $150 million to businesses around the country and KeyBank in the Northern District of Ohio.
The Bill of Information charges Khan with one count of bank fraud and one count of attempted tax evasion.
According to court documents, Khan owned and operated Interlogic Outsourcing Inc. (IOI), a payroll processing company that, at one point, provided services to approximately 6,000 clients.
Beginning in 2014, Khan operated a check-kiting scheme using his company’s business bank accounts to fraudulently obtain funds from various financial institutions, including KeyBank. Khan is accused of using these funds to support the growth of his payroll processing business and fund his lifestyle, which included the purchase of automobiles, aircraft, and vacation homes.
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