A former New York-area bank employee is being charged in an almost two-year-long, $2 million fraud and embezzlement scheme.
Kevin Chiu, 32, of Brooklyn, N.Y., is a former business relationship manager for a Manhattan-based financial institution, were announced in a March 1 U.S. Department of Justice news release.
"As alleged, for years, Chiu abused his position as a business relationship manager at a financial institution to steal millions from his clients, including elderly clients," U.S. Attorney for New York's Southern District Damian Williams said in the news release. "Today's arrest is yet another example of this office's commitment to holding accountable those who commit financial frauds, especially those who are in positions of trust within financial institutions."
Chiu was arrested in Brooklyn and was expected to appear before U.S. Magistrate Judge James L. Cott, the release reported. Charges against Chiu include bank fraud, embezzlement by a bank employee, money laundering and aggravated identity theft. The charges together carry maximum penalties of up to about 80 years in federal prison.
The scheme reportedly happened between Oct. 28, 2020 and ended on or about June 29, 2022, according to the news release.
Chiu allegedly stole from clients' accounts using fraudulent transaction forms to transfer funds out those accounts, the release reported. Chiu asked at least one elderly client to sign blank transaction forms, and he provided fake account statements so she could not know her account's true balance as he drained funds from it.
Chiu also allegedly transferred stolen funds from some client accounts to other accounts he already had stolen from as a way to conceal his fraud, the release reported.
Chiu stole more than $2 million from clients, several of whom were elderly, and used the money to purchase securities, trade in the stock market and pay personal expenses, according to the news release.
"The complaint today alleges that Chiu exploited his access to facilitate a years-long scheme to embezzle more than two million dollars from his clients," FBI New York Filed Office Assistant Director Michael J. Driscoll said in the news release. "Financial crimes like this ultimately undermine the public's confidence in the financial system. Today’s arrest should serve as reminder to anyone willing to take advantage of their employment to steal funds - the FBI will ensure you are held accountable in the criminal justice system."
