Two Illinois Residents Charged in Alleged Scheme to Pull $3.7 Million in Unauthorized Debits Through Shell Companies Set Up in Stolen Names

Published Nov. 11, 2026. Case status is current as of that date.

Check your bank statement for a small debit from a company you've never heard of: a "property management" firm, a "wellness center," a "medical & rehab" office. Federal prosecutors in New York say charges like that were the heart of a five-year scheme, run through companies that existed only on paper and were registered in the names of identity-theft victims.

On Nov. 10, 2026, the U.S. Attorney's Office for the Southern District of New York announced the arrests of Paris Baker, 38, of Chicago, and Michael Sullivan, 50, of Calumet City, Illinois. A criminal complaint charges both with wire fraud, access device fraud, money laundering conspiracy and aggravated identity theft [1].

Important: Baker and Sullivan are charged, not convicted. The release says "the entirety of the text of the Complaint and the description of the Complaint set forth in this release constitute only allegations," and that the defendants "are presumed innocent unless and until proven guilty" [1].

How the scheme allegedly worked

According to the complaint, as described by the U.S. Attorney's Office [1]:

1. Shell companies in stolen names. Between about 2019 and 2024, Baker, Sullivan and others allegedly incorporated shell entities "in the names of victims of identity theft."
2. Payment-processor accounts. They allegedly opened accounts for those shells with at least three payment processors, including one based in Rockland County, New York.
3. Unauthorized debits. Through those accounts, they allegedly started debits from third parties' bank accounts, "purportedly in consideration for services rendered by the shell companies."
4. Cashing out. Prosecutors say the processors cleared hundreds of thousands of dollars of those transactions and sent the money to bank accounts the shells controlled. The money was then allegedly spent or moved to other accounts.

Prosecutors say the group attempted to take at least about $3.7 million and actually obtained at least about $1.3 million [1].

The six companies named in the complaint

The release lists "no less than six fictitious shell entities" that prosecutors say "conducted no legitimate business or had any genuine customers" [1]:

• Sebi Property Management
• Sada Property Group
• Vollen Medical Center
• Acclimate Property Management
• Majani Wellness Center
• Fruitive Medical & Rehab Center

If any of these names appear on your bank statement and you didn't authorize the charge, contact your bank (see below). The release does not say which banks or payment processors were involved, other than the Rockland County location of one processor, and it does not name any victim.

Why this kind of fraud is hard to spot

Unauthorized-debit schemes don't require tricking anyone into handing over money. If someone has your routing and account numbers, a payment processor can be asked to "pull" money from your account as though you had agreed to pay a bill. Small or oddly named charges are easy to miss, especially on accounts you don't check often.

The identity-theft piece adds a second layer of victims: people whose names were used to register the shell companies. They may only find out when they get mail, tax forms or collection notices for a business they never started.

The people charged and their status

Paris Baker, 38, of Chicago. Arrested Nov. 10, 2026, in Thousand Oaks, California, and expected to be presented in Los Angeles federal court that afternoon, according to the release [1].

Michael Sullivan, 50, of Calumet City, Illinois. Arrested in Calumet City and presented in Chicago federal court on the morning of Nov. 10 [1].

Each is charged with wire fraud and conspiracy to commit wire fraud (maximum 20 years each), access device fraud and conspiracy to commit access device fraud (maximum 15 years), conspiracy to commit money laundering (maximum 20 years), and aggravated identity theft, which carries a mandatory minimum of two years in prison [1]. Those are statutory limits, not predictions. Neither has been convicted.

The FBI's New York Field Office (Westchester County Resident Agency) investigated. The case is being handled by the office's White Plains Division [1]. The release does not give a case number or the next court date. We found no public statement from either defendant or a defense lawyer.

U.S. Attorney Jamie McDonald said: "Paris Baker and Michael Sullivan allegedly created businesses that existed only on paper, using stolen identities to give their scheme the appearance of legitimacy while initiating millions of dollars in unauthorized bank transactions" [1].

Red flags

These are general warning signs, not claims about any person beyond what the complaint alleges.

• Debits from businesses you don't recognize, even small ones, on checking or savings statements.
• Mail, tax forms or notices for a company in your name that you never registered.
• A business registration, EIN letter or bank account you didn't open showing up on your credit report or in your mail.
• Repeated "test" charges of a few dollars, which can come before larger ones.

What to do if you're targeted

1. Read your statements line by line every month, or set up alerts for every debit.
2. Dispute unauthorized debits fast. Under federal rules for consumer accounts, the sooner you report an electronic transfer you didn't authorize, the more protection you have. Ask your bank in writing to return the money and block the company.
3. Ask about debit blocks or filters that only allow companies you approve to pull money from your account.
4. If your identity was used to register a business, file a report at IdentityTheft.gov, contact the state where the company was registered, and place a fraud alert or credit freeze with Equifax, Experian and TransUnion.
5. Report it to the FBI at ic3.gov and to the FTC at ReportFraud.ftc.gov.

Case status (as of Nov. 11, 2026)

Defendant	Court	Status	Source
Paris Baker, 38, Chicago	U.S. District Court, Southern District of New York (complaint; presented in C.D. Cal.)	Charged by complaint; arrested Nov. 10, 2026; not convicted; presumed innocent	[1]
Michael Sullivan, 50, Calumet City, Ill.	U.S. District Court, Southern District of New York (complaint; presented in N.D. Ill.)	Charged by complaint; arrested Nov. 10, 2026; not convicted; presumed innocent	[1]

Statuses can change. The release does not give a case number or next court date.

Sources

1. U.S. Attorney's Office, Southern District of New York, "Two Defendants Charged In Fraudulent Payment And Identity Theft Scheme," Press Release No. 26-324, Nov. 10, 2026. https://www.justice.gov/usao-sdny/pr/two-defendants-charged-fraudulent-payment-and-identity-theft-scheme

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