!
To: WSFAlist at keithlynch.net
Date: Wed, 7 Aug 2002 01:39:49 -0400
Subject: [WSFA] What were those people thinking?
From: ronkean at juno.com
Reply-To: WSFA members <WSFAlist at keithlynch.net>
Hundreds of credit union members knowingly overdrew their accounts by
thousands of dollars each. How could anyone think they could do such a
thing and not get into a heap of trouble?
http://story.news.yahoo.com/news?tmpl=story2&cid=509&u=/ap/20020806/ap_on
_bi_ge/attacks_atm_fraud_5&printer=1
Workers Accused of Credit Union Theft
Tue Aug 6, 2:11 AM ET
By DEVLIN BARRETT, Associated Press Writer
NEW YORK (AP) - In one of the largest fraud cases resulting from the
terrorist attacks, thousands of people are accused of using ATMs to steal
$15 million from a municipal employees' credit union whose computer
security system was damaged on Sept. 11.
Sixty-six people have been arrested and 35 more were being sought in the
scheme, authorities said Monday.
District Attorney Robert Morgenthau said the suspects found a way to
repeatedly withdraw up to $500 a day from ATMs — even if their accounts
at the Municipal Credit Union couldn't cover it.
The problem stems from Sept. 11, when the attack on the World Trade
Center damaged a nearby building housing the credit union's computer
system.
Credit union officials soon realized they could not properly monitor the
computer network that handles automated teller transactions. But they
decided to allow withdrawals without the normal banking safeguards so
they would not offend members affected by the tragedy.
"This is a prime example of no good deed goes unpunished," Morgenthau
said. "People took advantage."
He said as many as 4,000 people manipulated the system to overdraw their
bank accounts by at least $1,000. Of that group, more than 540 credit
union members exceeded their balances by more than $5,000.
According to authorities, a 54-year-old nurse made 54 cash withdrawals
from Sept. 18 to the end of October, leaving her with a negative balance
of $18,111.
A Housing Authority employee allegedly made dozens of withdrawals, using
his credit union card to make purchases at a barbecue restaurant, a
liquor store and a motel. A school safety officer allegedly made 80
withdrawals in a five-week span, leaving her account more than $11,000 in
debt.
The computer problem was fixed in November, and investigators began
tracing the illicit withdrawals. Authorities said a handful of people,
when confronted about the transactions, agreed to take out loans to pay
the money back.
Those who "took the least amount" will be able to pay back the credit
union, Morgenthau said.
Since Sept. 11, local and federal prosecutors have already charged more
than 90 people on a variety of fraud counts, many involving false claims
for assistance. No case has involved as many people as the one announced
Monday.
.
________________________________________________________________