An aspiring Southern California rapper is facing federal charges after prosecutors alleged that he and two other defendants were involved in a scheme involving more than $8.1 million in stolen and fraudulent checks.
Federal prosecutors allege that Ada William Obayuwana, 31, who performs under the names ColdheartedAC and AC, possessed more than $6.1 million worth of stolen or fraudulent checks inside his vehicle.
The case centres on U.S. Treasury checks and other payments that prosecutors say were altered, fraudulently endorsed and presented to financial institutions in an effort to obtain millions of dollars.
Obayuwana, a Quartz Hill resident, was arrested and made his initial appearance in federal court in Los Angeles. He has been charged alongside Albert Tai Vu, 28, of Westminster, and Cassandra Marie Murrillo, 31, of San Diego.
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Add Hunterfly on GoogleThe allegations are contained in a 25-count federal indictment. As with all criminal defendants, the three are presumed innocent unless and until proven guilty in court.
Prosecutors Allege More Than $6.1 Million in Checks Were Found in His Car
According to federal prosecutors, Obayuwana possessed more than 100 stolen or fraudulent checks with a combined face value exceeding $6.1 million.
Authorities say the checks were found in his vehicle in Oceanside in December 2023.
Among the items prosecutors say were in his possession were 48 stolen U.S. Treasury checks worth approximately $2.55 million.
The government checks allegedly included payments connected to:
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- Veterans benefits
- Social Security Administration benefits
The face value of the checks does not necessarily represent the amount authorities believe was successfully obtained.
Prosecutors allege that only a portion of the checks involved in the broader scheme was ultimately converted into cash.
Eight Checks Were Allegedly Cashed for About $1.7 Million
Federal authorities allege that eight of the checks connected to Obayuwana were successfully cashed for a combined amount of approximately $1.7 million.
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Add Hunterfly on GoogleThe indictment also alleges that he attempted to cash at least three Treasury tax refund checks between April 2022 and December 2023.
Those checks had a combined value of approximately $382,109, according to prosecutors.
Authorities allege that one of the checks was successfully cashed and that approximately $229,109 was subsequently withdrawn.
The case involves allegations that go beyond the physical possession of stolen checks. Prosecutors claim the defendants used multiple methods to facilitate the movement and conversion of funds.
Prosecutors Describe an Alleged System of Altered Checks and Fraudulent Accounts
According to the indictment, the alleged scheme involved altering checks and using fraudulent identities and financial accounts.
Prosecutors say participants allegedly forged endorsements on Treasury checks or altered names and addresses associated with the payments.
Authorities further allege that bank accounts were opened to receive money that had been fraudulently transferred.
In some cases, prosecutors say business documentation was created using names and identifying information designed to resemble legitimate victims.
The checks were allegedly deposited or presented at banks and credit unions across Los Angeles, Orange and San Diego counties.
Prosecutors also accuse Obayuwana and Vu of using stolen identities in connection with the alleged bank fraud.
Two Other Defendants Also Face Federal Charges
Obayuwana is not the only person named in the federal case.
Albert Tai Vu and Cassandra Marie Murrillo were also charged in connection with the alleged scheme.
Prosecutors allege that Vu attempted to cash at least six Treasury checks with a combined face value of approximately $2.15 million.
According to the allegations, two tax refund checks with a combined value of approximately $772,159 were successfully cashed.
Murrillo is accused of attempting to cash at least two checks worth approximately $60,193.
Prosecutors further allege that one check worth approximately $31,405 was successfully cashed.
The precise allegations against each defendant differ, and the criminal case will proceed through the federal court process.
Prosecutors Allege $250,000 Was Used in a Range Rover Purchase
The federal case also includes allegations concerning how some of the suspected proceeds were moved after entering financial accounts.
According to prosecutors, Vu allegedly obtained two cashier’s checks worth $250,000 each in April 2023.
Authorities allege that the funds came from an account associated with None to Lose LLC and were derived from unlawful activity.
One of the cashier’s checks was allegedly paid to an LLC connected to another alleged participant.
Prosecutors say that money was subsequently used to purchase a Range Rover.
The second cashier’s check, worth $250,000, was allegedly made payable to Murrillo.
These allegations form part of the money laundering counts included in the federal indictment against Vu.
The Three Defendants Face a 25-Count Federal Indictment
All three defendants face multiple federal charges.
According to the Justice Department, the charges include nine counts of bank fraud involving the defendants.
Obayuwana additionally faces allegations including:
- Three counts of delivering stolen Treasury checks
- One count of aggravated identity theft
Vu faces additional charges including:
- Five counts of delivering stolen Treasury checks
- Four money laundering counts
- Two counts of aggravated identity theft
Murrillo faces an additional count involving the alleged delivery of a stolen Treasury check.
At the time federal authorities announced the indictment, prosecutors said Obayuwana remained in federal custody.
Vu was arrested on August 27, while prosecutors said Murrillo was expected to surrender to authorities on September 1.
Potential Penalties Could Be Severe if Defendants Are Convicted
The Justice Department said the charges carry significant potential penalties.
A conviction for bank fraud can carry a statutory maximum sentence of up to 30 years in federal prison for each count.
Delivering stolen Treasury checks and money laundering charges can carry statutory maximum penalties of up to 10 years in prison, depending on the specific offence.
Aggravated identity theft carries a mandatory consecutive two-year prison sentence for each applicable count.
However, statutory maximum penalties are not guaranteed sentences.
If any of the defendants are convicted, a federal judge would determine the appropriate sentence based on the applicable law, sentencing guidelines and the facts established during the judicial process.
Multiple Federal Agencies Are Investigating the Case
The investigation involves several federal law-enforcement agencies.
The Justice Department identified the following agencies as participating in the investigation:
- Treasury Inspector General for Tax Administration
- IRS Criminal Investigation
- U.S. Postal Inspection Service
The involvement of multiple agencies reflects the different aspects of the alleged offences, including suspected tax-related fraud, financial crimes and potential theft involving mailed payments.
What to Do if a Government or Business Check Goes Missing
The case also highlights the financial risks associated with lost, stolen or altered checks.
The U.S. Treasury advises recipients of lost, stolen or misdirected government checks to contact the federal agency that issued the payment.
The issuing agency can begin the appropriate claims process and determine whether the original payment instrument has already been negotiated.
Financial institutions also have access to tools designed to identify potentially fraudulent Treasury checks.
The Treasury Check Verification System allows qualifying institutions to compare information associated with a Treasury check against government issuance records.
However, the Treasury advises that verification systems should be used alongside other fraud-detection measures, including examination of the check’s security features.
Businesses that regularly issue paper checks may also consider fraud-prevention services such as Positive Pay.
Such systems allow businesses to provide their banks with records of legitimate checks and can help identify discrepancies when a check is presented for payment.
Why Early Detection Matters
Individuals and businesses can reduce the risk of prolonged financial loss by regularly monitoring account activity.
Reviewing images of paid checks can help identify problems such as:
- Altered payee information
- Suspicious endorsements
- Unexpected transactions
- Missing checks
- Unauthorised changes to payment details
If a stolen or altered check is discovered, the account holder should contact the relevant financial institution immediately.
Important documents, including copies of the check, transaction records and account statements, should also be preserved.
When theft involving the mail is suspected, consumers and businesses may report the matter to the U.S. Postal Inspection Service through its official reporting channels.
A Federal Case Built Around Millions of Dollars in Alleged Fraudulent Checks
The allegations against Obayuwana and his co-defendants involve a large volume of checks, including government payments intended for individuals and businesses.
Prosecutors allege that the broader scheme involved more than $8.1 million in stolen checks, while more than $6.1 million worth of allegedly stolen or fraudulent checks were linked specifically to Obayuwana’s vehicle.
The case now moves through the federal criminal justice system, where prosecutors will be required to prove the charges beyond a reasonable doubt.
For now, the allegations remain allegations, and all three defendants retain the presumption of innocence.
The case is being investigated by multiple federal agencies and could result in significant prison sentences if the defendants are ultimately convicted.
