In 2010, Nakoula pleaded no contest to federal charges of bank fraud in California. Nakoula had opened bank accounts using fake names and stolen Social Security numbers, including one belonging to a 6-year-old child,[3] and deposited checks from those accounts to withdraw at ATMs.[26] The prosecutor described the scheme as check kiting: "You try to get the money out of the bank before the bank realizes they are drawn from a fraudulent account. There basically is no money."[7] Nakoula’s June 2010 sentencing transcript shows that after being arrested, he testified against an alleged ring leader of the fraud scheme, in exchange for a lighter sentence.[27][28][29] He was sentenced to 21 months in federal prison, followed by five years probation (supervised release), and ordered to pay $794,701 in restitution.[7][30] He was sent to prison, then to a halfway house,[31] and was released from custody in June 2011.