The U.S. Attorney for the Southern District of New York and the Federal Bureau of Investigation jointly announced the arrest and charging of a former business relationship manager at a financial institution located in Manhattan in what they described as a years-long fraud and embezzlement scheme that was used to steal over $2 million from the accounts of his former clients.
The suspect was arrested in Brooklyn and will be presented to a U.S. magistrate judge for consideration of bail and related matters.
The allegations of the complaint
According to the complaint that was drafted by the U.S. Attorney’s office, the defendant used his managerial position to provide access to clients’ accounts. The suspect is charged with using false transaction forms to remove money from his clients’ accounts at the bank.
The complaint alleges that the defendant persuaded at least one elderly client to sign blank transaction forms while she was meeting with him and then gave the woman false account statements that concealed the thefts.
The complaint alleges that the defendant used the money to purchase securities and for personal expenses. The fraudulent activity allegedly occurred between October 20, 2020 and July 2022.
The bank’s own investigation revealed one client who asked to receive paper statements of her accounts directly from the defendant instead of receiving them by mail at her residence in Israel.
In July 2022, the owner of the account asked to speak to a bank manager about her concerns. The paper statement mailed to the victim’s home in Israel showed a balance of approximately $13,000, while the statement that was given to her at the bank showed a balance of approximately $900,000.
The criminal charges
The defendant was charged with one count of bank fraud, one count of embezzlement by a bank employee, one count of money laundering and one count of aggravated identity theft. The bank fraud and embezzlement charges alone carry penalties including up to 30 years in prison.
The charges in this case are very serious. A conviction on a single charge could lead to several decades of incarceration.
Anyone facing white-collar crime charges may wish to consult an experienced criminal defense attorney for an evaluation of the evidence, the suggestion of potential defense strategies, and, if appropriate, assistance in negotiating an acceptable plea agreement.