Man pleads guilty to charges related to $130,000 check-kiting scheme

WILMINGTON, NC (WECT) – A man will spend more than 5 years in prison on charges of stealing more than $100,000.

Yuhanna Muhammad McCallum was sentenced to a minimum of 5 years and 7 months and a maximum of 7 years and nine months.

McCallum pleaded guilty to detecting theft and obtaining property over $100,000 by false pretense.

According to court documents, McCallum was the ringleader in a check-kiting scheme in late 2021 that cost two local credit unions more than $130,000 in just six months.

“McCallum induced more than a dozen other people to assist in the scheme by instructing them to open accounts at Excite Credit Union and Corning Credit Union so he could deposit thousands of dollars in bad checks,” the press release said.

Officials said the scam gained notoriety this year when TikTok users showed their audience how to participate in a similar scheme, presenting it as a glitch.

McCallum reportedly spent the money on luxury items such as designer shoes, clothes, jewelry and travel. Detective M. Eyck of the Wilmington Police Department was able to identify him on the ATM video, even though McCallum was wearing a mask. Detective Ake also found text messages from McCallum’s phone that described the entire scheme and attempted to implicate several people, including a minor.

“People often downplay financial crimes, but these scams don’t go without victims,” said Janelle Klein, a prosecutor with the North Carolina Conference of District Attorneys, who represented the state in the case. “Crimes like this affect the way our local banks do business, their profits and their philanthropy, and can have a negative impact on the 99% of banking customers who do everything right.”

McCallum was sentenced to the highest possible level of financial crime in North Carolina, a Class C felony. He was also convicted of identity theft in an unrelated scheme and ordered to pay restitution in that case. He was previously convicted of a similar charge in New York.

“This plea gets the con artist off the streets and away from his victims,” said District Attorney Rebecca Donaldson. “It also sends a message to other scammers looking to enter our community that we will prosecute these crimes to the fullest extent of the law and protect our community members and businesses from criminals.”