Four friends are charged with taking advantage of Federal Regulation E which stipulates that stolen funds must be repaid to the “victim” within 10 days if the card is reported lost or stolen. The friends opened up checking accounts at various banks. They made deposits into the accounts and then began withdrawing the funds at ATMs until the account was empty. They concealed their identities at the ATM machines by wearing motorcycle helmets. The friends then reported the cards as stolen and were repaid the funds by the banks.
The background of the accused are interesting. One is a lawyer and two worked at HSBC as financial advisors. While the plan was not complicated, it was very successful. The group stole over $400,000. Their scam was discovered when a bank investigator collaborated with another bank investigator to uncover the fraud.
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