In short
- Shestowsky and Rasmussen used stolen personal information to deposit fraudulent checks into accounts at JP Morgan Chase, Bank of America, and Wells Fargo.
- Rasmussen sold approximately 52 M&T Bank account numbers online between June 2019 and January 4, 2020.
What happened
John Shestowsky, a Canadian resident, admitted to conspiring with James Rasmussen and others to defraud financial institutions by using stolen personal information and unauthorized bank account numbers. The scheme involved emailing sensitive data and depositing fraudulent checks into accounts opened under a fictitious business, First America Solutions Corp.
Rasmussen sold personal information, including bank account numbers, online for profit and opened accounts at JP Morgan Chase, Bank of America, and Wells Fargo using the fictitious business. In total, 24, 18, and 47 fraudulent checks were deposited into these banks, respectively, using unauthorized account numbers.
Between March 16 and May 6, 2020, Shestowsky and Rasmussen caused 47 fraudulent checks to be deposited into the Wells Fargo Bank checking account using unauthorized bank account numbers of 47 individuals, including a victim in Wayne County in the Western District of New York.
In numbers
- 52 M&T Bank account numbers sold online
- 24 fraudulent checks deposited at JP Morgan Chase
- 47 fraudulent checks deposited at Wells Fargo
Named in this item
What compliance teams should check
- Review accounts and transactions linked to First America Solutions Corp. for signs of fraudulent activity.
- Monitor for unauthorized use of personal information and account numbers, especially those listed as '10k clients.'
- Investigate deposits of fraudulent checks at JP Morgan Chase, Bank of America, and Wells Fargo between March and May 2020.
Why it matters
This case highlights the risks posed by insider threats and the misuse of personal information in bank fraud schemes. Compliance officers must be vigilant in detecting unauthorized account openings, monitoring for fraudulent check deposits, and identifying suspicious activity linked to fictitious businesses. The sale of account numbers online underscores the need for robust controls to protect customer data and prevent financial institutions from being exploited by criminal conspiracies.
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