An employee at a billion-dollar bank has reportedly been arrested and accused of stealing money from the account of a deceased customer.

Latia Wynn of Wilmington, Delaware, was arrested by police for allegedly withdrawing $44,000 from a deceased customer’s account at WSFS Bank, NBC affiliate Philadelphia10 reports.

When one of its customers passed away in a motor vehicle accident, their family reportedly began closing all of their accounts – but noticed a lot of money was missing.

After officers were dispatched to the family of the victim, investigators were led to Wynn, who was later identified as a suspect and is now charged with one felony count of identity theft, one felony count of wearing a disguise during the commission of a felony, and one felony count of theft of $1,500 or greater.

The 25 year-old has been formally charged and released on an $18,000 unsecured bail.

As of March 31, 2024, WSFS Financial Corporation had $20.6 billion in assets and $80.5 billion in assets under management and administration.

In a similar case, the US Attorney’s Office for the District of New Jersey recently said bank employee Jorge Nova has pleaded guilty to a count of wire fraud and faces a 30 year prison sentence for draining $105,000 from a deceased customer’s account.

Nova was working at an unnamed commercial bank in Nutley, New Jersey when he came across a deceased customer’s account that had continued to collect Social Security benefits by direct deposit.

The retiree, who was receiving $2,372 per month in benefits, passed away on August 29th, 2014 – but the Social Security Administration (SSA) was not notified of the person’s death.

Consequently, the beneficiary’s account continued to receive funds from the SSA for more than four years.

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New York’s Attorney General is penalizing a national bank for freezing its customers’ accounts and handing the funds over to debt collectors.

New York AG Letitia James says an investigation by the Office of the Attorney General (OAG) found that South Dakota-based Pathward Bank illegally sent debt collectors tens of thousands of dollars from New Yorkers’ accounts and froze hundreds of clients’ accounts more than 1,400 times.

According to the AG, Pathward illegally froze accounts belonging to New Yorkers in violation of the state’s Exempt Income Protection Act (EIPA), which bans banks from freezing accounts that include certain government benefits like Social Security benefits, veterans’ benefits, disability insurance, and unemployment insurance, worth up to $3,425.

Says the Attorney General,

“Vulnerable New Yorkers had money taken out of their bank accounts by the very institution they trusted to protect them… Pathward’s illegal actions deprived New Yorkers of their hard-earned wages and critical government benefits.

My office is refunding New Yorkers for every dollar they lost due to Pathward’s illegal actions. If any New Yorker suspects that money is being improperly removed from their bank account, I encourage them to contact my office immediately.”

The OAG’s investigation also determined that the bank repeatedly violated the EIPA after instructing its third-party servicers to freeze accounts and transfer their funds to debt collectors.

Attorney General James notes that many of the accounts frozen had balances under $800, which is several thousand below the wage threshold under the EIPA.

Pathward has agreed to pay $79,664 plus interest to around 88 New Yorkers effected by the violations, and also pay a penalty of $627,000.

James says Pathward cooperated with the investigation and “voluntarily began to remediate these illegal practices last year.”

Pathward Financial had $6.868 billion in assets as of March 2023.

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The Financial Industry Regulatory Authority (FINRA) is ordering JPMorgan Chase to pay hundreds of thousands of dollars in damages to a former employee who accused the bank of defamation.

Former JPMorgan Securities (JPMS) financial advisor Michael C. Nolan says the trillion-dollar lender damaged his reputation in a Form U5 filing to FINRA after he left the bank in 2022.

FINRA requires member organizations to file a Form U5 to explain why individuals left the firm.

In its Form U5, JPMorgan alleged that Nolan violated company policy and shared sensitive information with a client.

“Registered Representative is under internal review for allegedly: sharing material non-public information with a client; failing to properly disclose his personal affiliation with an outside business interest prior to requesting information from firm resources regarding the outside interest; and, violating the firm’s policy prohibiting the use of unapproved electronic communication channels for business communications.” 

Nolan, who worked at JPMorgan for 41 years, denies the allegations and lodged a dispute claim citing FINRA Rule 1122, which prohibits financial institutions from filing misleading information regarding a registered adviser.

After over a year of arbitration, FINRA is awarding Nolan $250,000 in compensatory damages and ordering JPMorgan to expunge all defamatory language and responses on his Form U5.

“[JPMorgan Chase] is liable for and shall pay to Claimant the sum of $250,000.00 in compensatory damages, which includes the claim for advancement/indemnification.”

JPMorgan Chase has shelled out $522.448 million in total fines since 2000 levied by US regulators, enforcement agencies and lawsuits related to employment offenses, according to Violation Tracker, a comprehensive corporate misconduct database.

The bank generated $49.6 billion in profit last year.

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