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Woman admits to defrauding area banks

MADISON — A California woman admitted Thursday in federal court to defrauding area banks out of nearly $30,000 in cash advances by getting tellers to call a phony representative of a credit card company who approved the transactions.

Carmella Childs, 22, Sacramento, Calif., told District Judge Barbara Crabb that in June 2007 she went to Blackhawk Community Credit Union, 2704 E. Milwaukee Ave., Janesville, asking for an $8,000 cash advance on a Visa credit card.

After the request was declined, Childs had the teller call a phone number, and the person who answered told the teller how to override the system. The second time the teller swiped the card, the transaction went through.

A second woman entered the credit union, waited for Childs’ transaction to be completed and left with her.

Assistant U.S. Attorney Stephen Ehlke said Childs was working with Lakeisha Pearson, 23, also of Sacramento, and together they visited M&I banks in Janesville and Salem and Mid America and Johnson banks in Janesville, plus the Blackhawk Community Credit Union.

The scheme didn’t work at M&I bank in Salem, where Pearson was refused the $8,500 cash advance she requested. It also didn’t work at M&I Bank on Main Street in Janesville, where Child’s request for a $6,000 cash advance was declined, Ehlke said.

But Pearson was successful in getting $9,500 from Mid America Bank, 2317 Milton Ave., Janesville, and $12,000 from Johnson Bank, 1 S. Main St., Janesville, plus the $8,500 from Blackhawk Community Credit Union, all on June 6, 2007, Ehlke said.

Childs pleaded guilty to one count of bank fraud. Neither Childs nor her attorney disputed the government’s evidence Thursday.

“This is the third ring of scammers I’ve heard of,” Ehlke said after court. “Some have been prosecuted in Dane County and others in Milwaukee. They’re usually from California, although they may use an Arizona ID, and they try to get cash advances from banks—banks all over the Midwest.”

Pearson’s case has been transferred to federal court in Sacramento.

Childs faces maximum penalties of five years in prison, a $250,000 fine and restitution of $29,500 at her Dec. 16 sentencing.