Nearly 100 individuals were indicted Wednesday for their roles in a massive check cashing fraud ring that sucked nearly half a million dollars from TD Bank, the Manhattan District Attorney’s Office announced.
The key to their scheme lay in a significant loop hole in TD Bank’s system for telephone account transfers.
The ring leaders first convinced more than 90 people to open personal checking accounts at TD Bank, which were then used to move thousands in ill-gotten gains from a combination of bogus checks, electronic fund transfers and cash withdrawals from casinos in Atlantic City and Foxwoods, District Attorney Cyrus R. Vance, Jr. said in a statement.
Usually, any check deposits aren’t available until the bank determines there are sufficient funds. But by enlisting the account holders to move funds from their savings to their checking account by phone, the so -called “bosses” were given immediate access to the cash before the checks cleared.
That left them free to jet to an ATM or Western Union to withdraw the cash from checking – to the tune of $450,000 – before anyone was the wiser.
In total, prosecutors charged 94 individuals with several counts of conspiracy to commit grand larceny and criminal possession of a forged instrument.
“This case charges the entire criminal conspiracy from top to bottom—from the masterminds who organised and operated the scam, to the individuals who participated to make a quick buck,” Vance said. “The most recent cases brought by my Office’s Cybercrime and Identity Theft Bureau show how pervasive cyberfraud schemes are, and how they depend on individuals willing to play various criminal roles.”
See how their scheme worked below:
[credit provider=”manhattanda.org” url=”http://manhattanda.org/press-release/da-vance-94-individuals-indicted-fraudulent-check-scheme”]
Shady crime rings are one. Now see 15 other things you should NEVER waste your money on >