Security, Investigation, Corporate Events and Executive Protection Specialists
+44 20 3178 6427
A2Z Security Group News
Friends Use Reg E to Rip Off Banks
- 07 August 2009
- The friends launched what Brooklyn District Attorney Charles Hynes called a “a beaut of a scam, the scheme was simple as it was brazen.”
The friends opened many accounts at various financial institutions including Wachovia, HSBC, Chase and Signature Bank. Armed with open accounts and debit cards, the perpetrators made initial legitimate deposits and began withdrawing the money ($500 to $1000 per day) until the account was empty. To conceal their identities the accused withdrew money at ATMs with motorcycle helmets on and other various disguises. At this point the perpetrators reported the cards as stolen and were repaid the funds by the scammed bank.
The backgrounds of the accused are interesting. One is a successful lawyer and former paralegal at the DA’s office in Queens. Two others worked at HSBC as financial advisors. While the scheme was not complicated, it was successful. Authorities believe the group stole over $400,000. The scam was discovered when a Wachovia investigator collaborated with another bank investigator to uncover the unusual behavior.