A 37-year-old Katy woman is among five Houston-area residents facing federal charges for allegedly cashing a counterfeit U.S. Treasury tax refund check worth more than $1 million.

Kendra L. Folkes was named in a 33-count indictment unsealed Thursday, Aug. 20, in the Southern District of Texas, according to KPRC 2. The federal grand jury returned the indictment July 22.

The other defendants are Torik M. Blade, 39, of Missouri City; Rickelle D. Taylor, 38, of Spring; Raven N. Morris, 34, of Houston; and Stephen G. James, 42, of Houston. All five have made initial appearances before U.S. Magistrate Judge Yvonne Ho.

The alleged scheme

According to the U.S. Attorney's Office for the Southern District of Texas, an unidentified person deposited a counterfeit Treasury tax refund check for $1,052,615.97 into a business account belonging to Blade. The defendants then allegedly moved the money through a series of transactions, including purchasing cashier's checks, transferring funds between financial institutions and making cash withdrawals.

Prosecutors have not said publicly who originally deposited the check, how the counterfeit document was created or whether any of the money has been recovered.

Charges and potential penalties

The charges include passing a counterfeit U.S. Treasury check, bank fraud, conspiracy and money laundering. If convicted, each defendant faces up to 20 years in federal prison and a $250,000 fine on the counterfeit check charge alone. The bank fraud counts carry up to 30 years and a $1 million fine each.

Assistant U.S. Attorney John R. Lewis is prosecuting the case. The investigation was conducted jointly by the Treasury Inspector General for Tax Administration, IRS Criminal Investigation and the U.S. Secret Service.

All five are presumed innocent.

An indictment is a formal accusation of criminal conduct, not evidence of guilt. No arraignment date or trial schedule has been announced.