Kendrick Lamont Fugett, a 34-year-old West Dallas man, faces federal charges after prosecutors accused him of using stolen identities and counterfeit identification documents to deposit more than $15 million in U.S. Treasury checks intended for businesses across the country.
The U.S. Attorney’s Office for the Northern District of Texas announced Fugett’s arrest Thursday and said a criminal complaint charges him with bank fraud and aggravated identity theft.
The U.S. Attorney’s Office said Fugett would make his initial appearance in federal court in Dallas on Friday.
Alleged Identity Theft Scheme
According to an affidavit filed in support of the criminal complaint, Fugett allegedly assumed the identity of the chief financial officer of an Austin-based software company and used a fraudulent Texas driver’s license and forged corporate documents to open a business account at an Origin Bank branch in Dallas.
Authorities allege that Fugett then deposited a U.S. Treasury refund check worth more than $13.8 million.
In another alleged transaction, Fugett deposited a Treasury refund check exceeding $447,000 at a Bank of America branch in Mesquite.
Investigators say he assumed the identity of a billionaire chairman of the holding company connected to the business that was supposed to receive the payment. Fugett allegedly presented an Illinois driver’s license bearing his own photograph but another person’s identity.
The affidavit describes Fugett as a “recidivist identity thief” and alleges that the scheme involved multiple financial institutions in the Dallas area.
Previous Arrest and Outstanding Warrants
Authorities said Fugett has outstanding warrants from the Collin County Sheriff’s Office, Dallas County Sheriff’s Office, Denton County Sheriff’s Office and Arlington Police Department.
The warrants involve allegations including fraudulent use or possession of identifying information and providing false statements to obtain property or credit.
The affidavit also states that Nashville Airport Police arrested Fugett in July 2024 after he allegedly attempted to open bank accounts using fraudulent identities.
Officials Warn of Financial System Threat
U.S. Attorney Ryan Raybould said the alleged scheme went beyond traditional fraud because it targeted taxpayer funds and financial institutions.
“Stealing identities to siphon millions of dollars from the U.S. Treasury is not just fraud, it’s an attack on the integrity of our financial system,” Raybould said.
Raybould said investigators will continue pursuing people accused of targeting financial institutions and the businesses they serve.
Christopher J. Altemus Jr., special agent in charge of the IRS Criminal Investigation Texas Field Office, described the alleged scheme as deliberate and sophisticated.
IRS Criminal Investigation investigated the case. Assistant U.S. Attorneys Alexander Schwab and Ignacio Perez de la Cruz of the Fraud section are prosecuting Fugett’s case.
“The women and men of IRS-CI worked tirelessly to uncover Mr. Fugett’s alleged patterns of deception and misrepresentation, and we will continue to pursue anyone who attempts to steal from taxpayers,” Altemus said.
Potential Federal Penalties
If convicted, Fugett faces a maximum sentence of 30 years in federal prison for bank fraud.
The aggravated identity theft charge carries a mandatory two-year prison sentence, which is generally imposed in addition to the sentence for the underlying offense.
The charges stem from a criminal complaint, which is an allegation rather than a finding of guilt. Fugett is presumed innocent unless and until he is proven guilty beyond a reasonable doubt in court.