A California man has been indicted on three counts of bank fraud and aggravated identity theft by fraudulently withdrawing money from participants’ accounts in the Boeing Voluntary Investment Plan, totaling several hundreds of thousands of dollars. The defendant acquired identifying information and retirement account information of the Boeing employees, and then initiated fraudulent withdrawal requests from their Boeing retirement plan accounts. Knowing that confirmation notices of the fraudulent requests would be mailed to the victims, the defendant placed holds on the employees’ postal mail. Through a series of fraudulent manipulations, the defendant intercepted the mail and “cashed checks written to himself from the fraudulently opened bank account by using the Boeing employee’s forged signature,” and then endorsed the checks himself. Of note, the plan sponsor could be liable if the participant victims of these crimes claim that prudent processes were not in place to safeguard plan data.
www.plansponsor.com; July 20, 2020.
www.justice.gov; July 7, 2020.