Texas man "considered one of the largest digital counterfeiters - KYTX CBS 19 Tyler Longview News Weather Sports

Texas man "considered one of the largest digital counterfeiters in recent history" sentenced in Tyler

Posted: Updated:
Cloyd Ray Knight III Cloyd Ray Knight III
TYLER, TX. (KYTX) – A 58-year-old Arlington, Texas, man has been sentenced for counterfeiting violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Cloyd Ray Knight, III pleaded guilty on May 9, 2013 to passing counterfeit bills and was sentenced to 69 months in federal prison today by U.S. District Judge Leonard Davis in Tyler.


According to information presented in court, Knight began manufacturing counterfeit $100 United States Federal Reserve Notes at his home in Arlington sometime in 2004-2005.

He developed a manufacturing process that included using newspaper print paper, painting the paper with acrylic, printing a simulated watermark on the paper, printing a simulated security thread on the paper, printing a front and rear image on the paper, and spraying the notes with a dulling coat.

The process changed over time based on his experience and experimentation. After printing the counterfeit $100 bills, Knight would pass or use the counterfeit bills to purchase goods and then receive change in legitimate bills from retail stores located in east Texas and west Louisiana.

Considered one of the largest digital counterfeiters in recent history, Knight successfully passed more than $400,000 in counterfeit $100 bills.

Knight was indicted by a federal grand jury on January 23, 2013. After pleading guilty in May 2013, he absconded. Knight was then rearrested in January 2014.

This case was investigated by the United States Secret Service and was prosecuted by Assistant U.S. Attorney Frank Coan.

U.S. Attorney's Office/Eastern District of Texas


  • Local NewsMore>>

  • In somber ceremony, Dutch welcome home first remains of MH17 victims

    In somber ceremony, Dutch welcome home first remains of MH17 victims

    Wednesday, July 23 2014 12:47 PM EDT2014-07-23 16:47:58 GMT
    CNNCNN
    (CNN) -- A lone bugler sounding the traditional military farewell "Last Post" marked the arrival Wednesday in the Netherlands of the first dead from the crash of Malaysia Airlines Flight 17.More >>
    (CNN) -- A lone bugler sounding the traditional military farewell "Last Post" marked the arrival Wednesday in the Netherlands of the first dead from the crash of Malaysia Airlines Flight 17.More >>
  • Washington family says dog reunited with Texas family belongs to them

    Washington family says dog reunited with Texas family belongs to them

    Wednesday, July 23 2014 10:25 AM EDT2014-07-23 14:25:07 GMT
    It was a joyous reunion for one family and a devastating loss for another. The Miller family of Tyler lost their beloved Maltese named Reese seven years ago. The little white dog escaped while the Millers were visiting family in Balch Springs.More >>
    It was a joyous reunion for one family and a devastating loss for another. The Miller family of Tyler lost their beloved Maltese named Reese seven years ago. The little white dog escaped while the Millers were visiting family in Balch Springs.More >>
  • ‘Operation Coyote’ targets human smuggling networks

    ‘Operation Coyote’ targets human smuggling networks

    Tuesday, July 22 2014 4:43 PM EDT2014-07-22 20:43:13 GMT
    photo: (ICE)photo: (ICE)
    WASHINGTON (KYTX) — In a news conference Tuesday, Secretary of Homeland Security Jeh Johnson, joined by U.S. Immigration and Customs Enforcement (ICE), U.S. Customs and Border Protection Border Patrol and U.S. Deputy Attorney General announced the progress of ongoing enforcement efforts by ICE Homeland Security Investigations (HSI) and the U.S. Department of Justice to target human smuggling networks in the Rio Grande Valley.More >>
    WASHINGTON (KYTX) — In a news conference Tuesday, Secretary of Homeland Security Jeh Johnson, joined by U.S. Immigration and Customs Enforcement (ICE), U.S. Customs and Border Protection Border Patrol and U.S. Deputy Attorney General announced the progress of ongoing enforcement efforts by ICE Homeland Security Investigations (HSI) and the U.S. Department of Justice to target human smuggling networks in the Rio Grande Valley.More >>
Powered by WorldNow

CBS19, MYTX & KCEB
2211 ESE Loop 323
Tyler, TX 75701
Phone (903) 581-2211
Fax (903) 581-5769

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KYTX. All Rights Reserved. Users of this site agree to the Terms of Service, Privacy Notice/Your California Privacy Rights, and Ad Choices.