An insider at a bank with branches across the US is accused of forging documents to steal funds from customers’ accounts.

The Department of Justice (DOJ) says that while working as a teller at the unnamed bank’s branch in Boston, Massachusetts, Derek Aut lifted $180,000 from the accounts of two customers.

To carry out his scheme, Aut allegedly forged the names of the customers on the withdrawal slips, among other techniques.

After the first theft was discovered, Aut siphoned funds from another bank account to replace the missing money.

“When one of the victims noticed money missing from her account, Aut allegedly attempted to cover his theft by taking money from the other victim’s account and depositing it into the first victim’s account.”

The initial criminal charges against Aut were filed in December of 2024.

The charges now include embezzlement by a bank employee and aggravated identity theft. Aut, who has agreed to plead guilty to the charges, faces years in prison and a monetary fine.

“The charge of embezzlement by a bank employee provides for a sentence of up to 30 years in prison, five years of supervised release and a $1 million fine. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.”

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Two of the largest banks in the US are reportedly locked in a legal battle over a $481 million commercial property loan.

Wells Fargo is suing JPMorgan Chase, the largest back in the US, over accusations it greenlighted a real estate loan even though it allegedly knew that the financial statements were fraudulent, reports Reuters.

In 2019, JPMorgan issued a loan to real estate development and investment firm Chetrit Group to finance the purchase of 43 multi-family buildings with 8,671 apartments across 10 states.

Acting as the investors’ trustee, Wells Fargo alleges that JPMorgan and Chetrit knew that the sellers had fraudulently inflated the buildings’ historical net operating income by 25% even before closing the deal at $522 million.

A property’s historical net income is a financial metric that measures the income generated by a building over a specific time frame. A property’s past earnings are typically used to assess its potential value.

Wells Fargo claims that JPMorgan approved the overvalued property deal to reap millions of dollars in fees, thinking that the assets would eventually be dumped on investors who wouldn’t realize the buildings were not as profitable as declared on paper.

Chetrit’s loan turned sour in 2022 and, in the process, Wells Fargo says investors in the trust have lost tens of millions of dollars.

“[JPMorgan] had an obligation to engage in due inquiry to determine the scope of the fraudulent reporting. Instead, [JPMorgan] plowed ahead as if nothing unusual had happened without even bothering to correct known errors in the numbers.”

Wells Fargo is asking the court to order JPMorgan to either pay for damages or repurchase the loan and make the investors whole.

JPMorgan and Chetrit have not yet issued a statement regarding the case.

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A Bank of America insider is pleading guilty to boosting a global money laundering conspiracy that aided drug traffickers and other illegal businesses, according to the U.S. Department of Justice (DOJ).

The DOJ says former Bank of America employee Rongjian Li was a member of a money laundering and drug trafficking outfit headed by Jin Hua Zhang.

According to prosecutors, Li used his position at the bank from 2021 through 2022 to help the criminal organization open several accounts.

Zhang’s organization then used the BofA accounts, some of which were registered using forged passports, to launder illicit funds.

“As part of his involvement, when the bank’s financial auditing systems flagged or froze accounts for suspicious activity, Li helped Zhang circumvent the bank’s anti-money laundering protocols and move illicit funds elsewhere.

In addition, Li was observed sitting next to Zhang at a dinner in New York, where Zhang discussed the different fee percentages he charged various criminal groups for drug trafficking and scams.”

Zhang’s organization is believed to have laundered millions of dollars in a span of months, according to the DOJ.

“The investigation revealed that, for a fee, Zhang laundered bulk cash for drug dealers and laundered profits from other illegal businesses. In less than a year, Zhang and his organization laundered at least $25 million worth of drug proceeds and funds from other illegal businesses through undercover agents.”

Li has pleaded guilty to the charge of conspiracy to commit money laundering. He faces a monetary fine and a prison sentence.

“The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater.”

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