Bank alleges employees stole $1.6 million in New Jersey

Two former BankAsiana employees are denying accusations made by the acquirer of the Palisades Park-based community bank that between 2010 and October 2013 they embezzled nearly $1.6 million.

Los Angeles-based Wilshire Bank’s civil lawsuit, filed in federal court in Newark, has prompted counterclaims of "baseless" and "malicious" prosecution by defendants Miye "Karen" Chon of Englewood Cliffs, a former assistant vice president in BankAsiana’s Fort Lee branch, and co-defendant Suk Joon "James S." Ryu of River Vale, a former chief operating officer of BankAsiana.

Lawyers for Wilshire Bank and Chon said Tuesday that they would not comment on the litigation.

In court papers, Chon denies she stole money from the bank’s vault.

Ryu denied he was involved in any embezzlement scheme, and alleged that "Chon intentionally made a false statement that he was involved … probably for the purpose of reducing her obvious liability in this scheme."

Ryu also is countersuing Chon for "malicious conduct" and "making false statements."

"My client is very innocent," Ryu’s Fort Lee attorney, Jungsup Kim, said Tuesday by phone.

The legal wrangling that began in March is entering the discovery phase this week, where plaintiffs and defendants will gather documents and take depositions from witnesses. The litigation is likely to drag on for months, the lawyers say.

Wilshire’s initial complaint alleged Chon, aided and abetted by Ryu, periodically took cash from the bank’s vault between 2010 and October 2013 and deducted the amounts from unwitting customers’ certificate-of-deposit accounts.

False withdrawal records and funds transfers from other customers’ accounts were alleged to have been created to cover up the thefts in the "lapping" scheme.

According to Wilshire, records related to seven customer CD accounts were falsified.

Wilshire claims that stolen cash was shared by Chon, Ryu and Chon’s husband, Tae Jong Kim, and his bagel companies, which include Bergenfield Bagel & Cafe Inc., Maywood Bagel Inc., UB’s Pizza & Bagel Inc., UB’s Bagel & Cafe Inc. and UBK Bagels Corp.

The initial complaint named BankAsiana’s former chief executive officer, Hong Sik Hur of Cliffside Park, as a defendant, alleging that he failed to properly oversee BankAsiana, and that he took a company computer and failed to immediately return a company car after he was fired "for cause" by Wilshire in February.

Under a requirement in his employment contract, those allegations are being handled separately, in an arbitration process.

 Federal prosecutors say a former assistant vice president at a northern New Jersey bank has been charged in a scheme to embezzle more than $1 million.

Miye Chon, who also is known as “Karen Chon,” turned herself in to the FBI on Tuesday and was due to make her initial court appearance later in the day. The 34-year-old Englewood Cliffs resident is charged with theft, embezzlement or misapplication of funds by a bank officer or employee.

Prosecutors say Chon was employed by BankAsiana until it was acquired by another bank in October 2013.

Chon was an operations officer and later an assistant vice president at the bank’s Fort Lee branch. She had access to customer accounts, as well as the bank’s internal account records, computer system and vault.

Over the course of several years, Chon allegedly stole more than $1 million by regularly making unauthorized transfers among accounts, and then physically removing cash from the bank’s vault.

BankAsiana’s successor bank began an internal investigation after a customer found problems with tax forms and account records. Prosecutors say the successor bank discovered that Chon, using her unique credentials, accessed BankAsiana’s computer systems on multiple occasions to make unauthorized transfers.

Chon allegedly avoided detection by making false entries in the bank’s records and ensuring that funds she removed from accounts were transferred back.

Chon allegedly embezzled funds on dozens of occasions, typically taking tens of thousands of dollars at a time.

She faces up to 30 years in prison if convicted

Former bank manager pleads guilty to embezzlement in New Jersey

Federal prosecutors say a former branch manager of a southern New Jersey bank has admitted embezzling more than $260,000.
Season Wengert of Franklinville now faces up to 30 years in prison and a $1 million fine. She also will have to make full restitution.
The 32-year-old Wengert pleaded guilty Tuesday to bank embezzlement. Prosecutors say the thefts occurred between September 2007 and January 2013, but did not say what the money was used for.
Prosecutors say Wengert stole $263,864 by fraudulently conducting online computer transfers of money from 38 accounts belonging to 23 customers into accounts owned by her or her husband. She also withdrew money from customers' accounts and deposited it into her accounts.

Bank employees facing charges in New Jersey

Two bank employees were arrested last week for allegedly embezzling money from the Saddle River Road branch of TD Bank over the course of several months.

On Aug. 29 at 3:14 p.m., Officer Joseph Mecionis responded to the TD Bank on Saddle River Road for a report of embezzlement. After arriving at the bank, the officer met with corporate security representatives who stated they had two employees in custody for stealing money and falsifying bank records to cover up the theft.
Ian Williams, 23, of Englewood allegedly began taking money from his drawer "on and off for several months," police said. Later, Williams enlisted the aid of his co-worker – Gisselle Delacruz, 24, of Prospect Park – to help him cover up the thefts, police said. The duo allegedly falsified records to cover up the cash shortages in their drawers, police said.
Authorities allege that Williams stole $6,100 and Delacruz stole $4,100.
The pair was arrested on Aug. 29 and charged with theft and conspiracy. They were later released on their own recognizance and are scheduled to appear in Fair Lawn Municipal Court on Sept. 14.

New Jersey Man Charged in $1.8 Million Bank Fraud Scheme

An indictment was unsealed today against Brian Geller charging a multi-year bank fraud scheme that netted him over $1.8 million between the summer of 2005 and the summer of 2009, announced United States Attorney Zane David Memeger. Geller was also charged with engaging in transactions over $10,000 with the proceeds of the fraud.The 22-count indictment charges that Geller, while an employee of JPMorgan Chase Services, manipulated JPMorgan Chase Bank’s internal books and records and caused the Bank to wire transfer to his account, to accounts of his family, and to accounts in which his life partner had right, title, interest or control. The indictment claims that among the wire transfers of funds was one in 2005 for over $499,500, one in 2008 for $583,444.99, and one in 2009 for another $583,444.99.

N.J. Bank Exec Charged with Fraud

A former employee of Pamrapo Savings Bank was arrested on June 2 and charged with diverting and embezzling more than $600,000 from the Bayonne, New Jersey-based bank.

Brian Campbell, former managing director of the bank's investment company, was taken into custody by federal agents and faces a 54-count indictment with charges of mail fraud and money laundering. An initial hearing on the charges was held by U.S. Magistrate Judge Madeline Cox Arleo in the District of New Jersey, Newark Division.
Pamrapo Bank has more than $500 million in assets and 10 offices in New Jersey. The now-defunct Service Corporation was the investment subsidiary of Pamrapo Savings Bank, S.L.A., a savings and loan holding company. The Service Corporation provided securities and investment services including the sale of stocks and bonds, mutual funds, annuities, various types of insurance policies and other money management services, to clients for a fee. It also offered insurance and annuity products.
The Service Corporation was required to conduct or "clear" securities transactions, such as the purchase, sale and transfer of stocks, through a registered broker-dealer. Its other investment services went through a second subsidiary, an accounting company, which was a sister company to the registered broker-dealer. Campbell was designated as a "registered representative" of these two entities and was authorized to conduct securities transactions and other investment services for customers on behalf of the Service Corporation through the two entities.
The commissions and fees Campbell generated through the business were first to go the service corporation. After the company's cut of the fees and commissions were taken, Campbell was paid at rates set by the board of directors.
In August 2006, Campbell's compensation was modified, resulting in a significant pay cut. Then in 2007, the indictment says, Campbell allegedly created a scheme to divert money belonging to the Service Corporation to himself.
The indictment states Campbell began his scheme by sending a letter to the registered broker-dealer, falsely claiming Pamrapo Savings Bank wanted commissions owed to the Service Corporation to be paid directly to Campbell. Campbell allegedly had a second letter signed, directing the registered broker-dealer and the accounting company to pay the vast majority of the fees and commissions owed to the Service Corporation directly to Campbell.
In the same time period, the indictment states, Campbell had various insurance companies issue fees and commissions owed to the Service Corporation directly to him, without the authorization or knowledge of the board of directors. Campbell tried to cover up his crime by making false statements to the Pamrapo Savings Bank, its chief financial officer, the board of directors, the Service Corporation and others.
He allegedly received more than $600,000 in checks from the various entities in this scheme. He is also charged with money laundering, as he allegedly laundered portions of the fraud proceeds to pay his credit card bills.
If convicted, Campbell faces a maximum penalty of 20 years in prison and a $250,000 fine on each of the mail fraud charges. He faces a maximum prison sentence of 10 years and a $250,000 fine on each of the money laundering charges.
Campbell's arrest and indictment come just two months after the Office of Thrift Supervision assessed a $5 million penalty against the bank for violations of the Bank Secrecy Act.
Investigating the case were officials from the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), the Department of Justice and the Internal Revenue Service.