West Virginia Press Association
CHARLESTON, W.Va. – On Friday, West Virginia State Auditor JB McCuskey was joined by United
States Attorney Will Thompson, West Virginia State Police and Truist Bank officials to announce
the recovery of nearly a million dollars, stolen from the state of West Virginia.
The money was stolen through a check fraud scheme that remains under investigation but
thanks to the immediate and collaborative action taken by the State Auditor’s Office, the
Treasurer’s Office, the United States Attorney’s Office, the Governor’s Office, West Virginia
State Police Bureau of Criminal Investigations and Truist Bank $966,083.04 was recently
recovered and deposited back into a state bank account.
“This recovery marks a major win in our fight against fraud,” West Virginia State Auditor JB
McCuskey said. “We have become one of the most successful fraud fighting agencies in the
state and have developed a successful working relationship with our many partners who share
in our commitment to protecting taxpayer dollars. Unfortunately, check fraud is at an all-time
high, making everyone susceptible, and that is why we have been resolute in our response and
vigilant in our ongoing efforts to prevent this from happening.”
“Our office is proud to work alongside the West Virginia Auditor, his office and our other state
partners to safeguard taxpayer dollars, prevent fraud and abuse, and go after those who
perpetrate check washing and similar crimes,” United States Attorney Will Thompson said.
The checks in question were sent to a Department of Health and Human Resources vendor as
part of a Medicaid contract. At some point the checks, issued by the state of West Virginia,
were stolen by bad actors, the specific details of the scheme remain confidential as the
investigation continues. The amount recovered represents roughly 85% of what was owed to
the vendor and efforts continue to recover the remainder of the money. This incident highlights
the vulnerability of using paper checks, a vulnerability that is increasing every day.
“Since 1979, Truist and the State of West Virginia have worked closely to help manage West
Virginia’s day to day banking needs and do that in the most safe and secure manner. The close
partnership and collaboration with both the Auditor’s and Treasurer’s office is critical to
executing effectively. With the most recent fraud event, this relationship grew even deeper as
we were able to work as one team to recover a substantial amount of the State’s proceeds,”
Patrick O’Malley Executive Vice President, West Virginia Market President Truist Bank said.
“The banking landscape continues to change at a rapid pace and fraud remains a main concern
across our industry. Truist looks forward to continuing to find ways to help the State of West
Virginia operate efficiently and protect the funds of our great citizens.”
Since taking office in 2017, Auditor McCuskey has been pushing to eliminate check payments to
vendors because of the risk of fraud presented. McCuskey has been advocating for Electronic
Fund Transfer (EFT) payments, which are more secure and faster for both vendors and the
state. When Auditor McCuskey took office, the state was issuing 22,000 checks to vendors per
week on average. Through Auditor McCuskey’s efforts to make the payment process more
secure, the number of checks being issued to vendors has been reduced to just 9,000 checks
per week on average. This reduction was accomplished through a variety of methods including
education, reducing the check runs from daily to weekly and the development of new software
that will soon require all new vendors to sign up for EFT.
Auditor McCuskey continues to urge vendors to sign up for EFT. Vendors can sign up at
www.wvsao.gov and clicking on the E-Payments tab. If vendors need assistance, they can call
304-558-2251.
So far, no arrests have been made but this joint investigation is ongoing.
