SOUTH BEND, Ind. (WNDU) — A South Bend man, 55-year-old John Winston Jr., has been arrested in connection with a widespread bank fraud scheme that is currently being investigated by a grand jury in Iowa.
Winston, along with 17 other individuals, has been indicted on charges including bank fraud, conspiracy to commit bank fraud, and money laundering. The scheme reportedly spans from December 2021 to May 2023, involving theft of checks from the mail that were meant for legitimate businesses.
According to the FBI, Winston and his co-defendants stole checks intended for businesses, using fake entities registered with state government agencies like the Iowa Secretary of State. These fake entities, mimicking the names of legitimate businesses, were then used to unlawfully obtain the funds. The defendants also applied for and acquired Employer Identification Numbers (EINs) to create these fraudulent businesses, allowing them to access money they were not entitled to.
Although many of the defendants resided in Iowa, Illinois, and Indiana, the scheme reached across several states, including Georgia, Ohio, Texas, California, and New York, as well as parts of Canada, including Quebec.
In a twist, earlier this year, Winston was seen publicly supporting David Smith, the father of six children who tragically died in a fire. Smith, a grieving father, described Winston as his “best friend” during an emotional interview. Winston voiced his concerns about the fairness of how the funds raised in the children’s name were being distributed, advocating for Smith to receive all of the money, rather than just what he “needed.”
Winston is currently held in the St. Joseph County Jail, awaiting further legal proceedings related to this extensive fraud investigation.