Dorchester man indicted in $4 million bank fraud scheme
A Dorchester man was indicted Wednesday in connection to a $4 million scheme where he allegedly withdrew money from unsuspecting victims’ bank accounts, the U.S. Attorney’s office said in a statement.
Charles Washington, 43, was indicted in U.S. District Court on charges of bank fraud and four counts of bank fraud conspiracy, according to officials. He is being held without bail.
Washington and his co-conspirators allegedly gained access to around $4 million, either through bank accounts they took over or in proceeds withdrawn from “drop accounts,” accounts used to access unlawful wire transfers. They were able to successfully withdraw about $2 million, according to court documents.
The U.S. Attorney’s office said Washington acquired the bank account information, sample signatures, and personally identifiable information of account holders with high balances. He then allegedly recruited “runners” to impersonate those account holders inside banks, using fake driver’s licenses Washington provided them, and make unauthorized withdrawals. He also taught the runners how to forge the victims’ signatures, officials said.
To avoid detection, officials said runners withdrew money at several different bank branches over a period of three years.
Washington’s runners also opened accounts for non-existent businesses, officials said. These fake businesses were named and registered as if they were companies for which large wire transfers would not be unusual, such as contracting businesses, according to the statement.
Unauthorized wire transfers of large amounts were then dropped into these accounts, according to officials. Runners allegedly went to banks in order to withdraw the money before victims realized their accounts were jeopardized.
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