Warren County officials announced the results of a multi‑month investigation into a massive electronic‑payment fraud that siphoned more than $3.3 million from the county treasury. The probe, launched on Dec. 23, 2025 after County Board Chairman Kevin Geraghty raised concerns, revealed a lack of formal policies, inadequate employee training, and ignored transaction limits.
How the scheme unfolded
Investigators say an individual posing as a representative of Peckham Road Corp contacted the Warren County Treasurer’s Office and requested the creation of an automated clearing house (ACH) account for electronic payments. The fraudulent account was set up, and two large payments were transmitted.
The first payment of $2,132,480.23 was sent on Dec. 12, 2025 to a Discover Bank account. A second payment of $1,225,954.65 was authorized on Dec. 23, 2025. Both amounts exceeded the county’s $1 million pre‑approved transaction limit and triggered fraud alerts from Arrow Bank.
Despite the alerts, the county’s deputy treasurer approved both payments without independently verifying the account information, according to Sheriff Jim LaFarr’s office.
Discovery and recovery efforts
The scheme was uncovered on Dec. 23 when Peckham Industries contacted the county about unpaid invoices, stating it had never requested electronic payments and did not employ anyone named Rafael Diaz—the name listed on the fraudulent authorization form.
Because the second payment was still pending, Arrow Bank was able to freeze the transaction and return the $1,225,954.65 to Warren County. Investigators, working with the U.S. Secret Service, traced all but $48,873.65 of the $2.13 million stolen in the first transaction.
To date, $872,823.84 has been returned to the county, and an additional $1,259,656.39 has been located, though officials say it is unlikely to be recovered due to the delay between the theft and its discovery.
Georgia woman’s involvement
Authorities traced the first fraudulent payment to 70‑year‑old Patricia Laster of Baldwin County, Georgia. Laster admitted she acted as a courier for an unidentified individual believed to be connected to the scheme, but she was not identified as the mastermind.
Prosecutors in Georgia and the U.S. Attorney’s Office for the Middle District of Georgia declined to bring charges against Laster. Warren County prosecutors also said they lacked jurisdiction because the alleged offenses involving Laster occurred in Georgia.
County response and policy changes
Sheriff LaFarr’s office noted that the Treasurer’s Office lacked formal policies and employee training for establishing ACH accounts and processing electronic payments. The county continued processing ACH payments despite advice from the County Attorney’s Office in Oct. 2025 that Board of Supervisors authorization was required.
The county formally adopted its wire‑transfer and electronic‑banking policy on Dec. 19, 2025—one week after the first fraudulent payment.
Investigators said information disclosed during telephone conversations with the impersonator likely contributed to the scheme’s success.
Next steps
The Warren County Sheriff’s Office said investigators will keep pursuing leads to identify the individual who posed as Rafael Diaz. County officials are also reviewing and strengthening financial safeguards to prevent future fraud.
Original reporting: CBS 6 WRGB Albany (local) — read the source article.
