Daily Archives: October 1, 2015

Chase Can’t Dodge $10M Identity Theft Suit

(CN) – Chase Bank must face identity theft claims for employees who let money launderers use a customer’s dormant accounts in a Medicare fraud scheme, the Second Circuit ruled Wednesday.
Yelena Galper sued JP Morgan Chase Bank N.A. in New York state court in May 2013, claiming several of its employees accepted bribes to help now-convicted money launderers defraud the Medicare program from 2008 to 2011, using accounts in her name.
Controllers of three clinics – Bay Medical Care, SZS Medical Care and SVS Wellcare Medical – would allegedly write checks to phony corporations, thus concealing the fraud.
The launderers would then withdraw cash from the phony accounts and return it to the clinic owners, after taking a fee for themselves, according to Galper’s amended complaint.
Chase employees knowingly let the launderers control Galper’s previously dormant personal checking account and let them use an associated ATM card to deposit and pay out proceeds of the Medicare fraud scheme, the complaint states.

Read on.