JP Morgan Chase Sues 4 Customers Over Alleged Fake Check Fraud Scheme

A customer uses a Chase Bank ATM in Chicago on March 17, 2011. Scott Olson/Getty Images

JP Morgan Chase has filed lawsuits against four customers, accusing them of bank fraud linked to large, unauthorized withdrawals.

The so-called “infinite money glitch,” as it became known on the social media platform TikTok, instructed users to write large checks to themselves and attempt to immediately withdraw all or part of the cash from ATMs.

The lawsuits don’t specifically mention TikTok or the “money glitch,” but the withdrawals referenced occurred at the end of August when the videos were trending.

According to the bank’s complaints, each defendant deposited fraudulent checks and then swiftly withdrew significant amounts of money before the transactions were flagged as counterfeit, leaving Chase with substantial losses.

In a complaint filed against Micah Reed on Oct. 28, Chase alleges that Reed deposited two checks totaling more than $116,000 in late August at a Chase ATM in California.

Following the deposit, Chase claims Reed began “transferring substantial amounts of those ill-gotten funds out of his account.”

Ultimately, the checks were returned as counterfeit, resulting in a negative balance of $90,000. The complaint notes that “fraud is a crime that impacts everyone and undermines trust in the banking system” and that the institution “takes its responsibility to combat fraud seriously” to maintain the integrity of its operations.

In Texas, Chase filed a complaint against Timipah Ikemi, alleging that on Aug. 29, a masked man deposited a $335,000 check into Ikemi’s Chase account through an ATM.

The complaint states that after the deposit, Ikemi initiated a series of withdrawals, including a $100,000 wire transfer and a $150,000 cashier’s check purchase, ultimately withdrawing or transferring at least $320,000 of the $335,000 from the account.

On Sept. 4, the check was rejected and returned as counterfeit, leaving a negative balance of $290,939.47. Chase’s representatives attempted to contact Ikemi, but according to the complaint, he “failed to respond” and has not returned the funds.

In Florida, Chase brought two additional cases against business entities Riskboss Musiq, LLC, and In and Out Appliances, LLC.

According to the filings, Riskboss Musiq allegedly deposited a $149,000 fraudulent check on Aug. 23, before initiating a series of withdrawals and transfers that depleted the account balance.

The check was later identified as a forgery, resulting in an alleged debt of more than $141,000. Chase stated that it contacted the business regarding the overdraft, but it has yet to return the funds.

In the fourth case, In and Out Appliances is accused of depositing two checks totaling more than $320,000 on Aug. 28 and 29, at a Chase ATM.

Shortly after the deposits, the complaint claims the company made “several significant withdrawals,” leading to a large negative balance when the checks were returned as counterfeit. According to Chase, In and Out Appliances owes the bank more than $138,000.

Chase is seeking to recover the funds lost in these alleged schemes, along with related overdraft fees, interest, and legal expenses.

The bank said that “while fraud methods have evolved over time, the core intent to exploit and deceive remains unchanged,” and it aims to hold those who breach its agreements accountable.

The cases are currently filed in federal courts across California, Texas, and Florida, where Chase has requested judgments for immediate repayment of the overdraft amounts and any incurred fees.

Attorneys for all four parties had not yet been listed in the federal court’s online docketing system, making them unreachable at the time of publication.

The Epoch Times attempted to reach the businesses against which charges were filed but did not receive a response.