New York – New York City prosecutors say nearly 100 people formed a well-organized check fraud ring that exploited a banking loophole to steal more than $450,000 by depositing bogus checks and withdrawing the money before they bounced.
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Manhattan District Attorney Cyrus R. Vance Jr. announced Wednesday that 94 people had been indicted on various charges.
Vance says the group opened savings accounts at TD Bank branches and then deposited worthless checks. Prosecutors say the savings accounts weren’t subject to policies that prevent money deposited into checking accounts from being available immediately.
Prosecutors say the suspects then transferred the funds to checking accounts and withdrew as much as possible from cash machines.
TD Bank says it can’t comment on the investigation, but no customer account data were compromised.
It seems as though TD Bank has moronic programmers. It seems as though they allowed you to deposit a check into savings and if transferred to checking there was no hold or clearing wait attached to the transfer.
The shorter version is “MORONS”.
Td bank saved all of us a lot of us a lot of headaches. Till they came around you deposited a check and even though teh other bank took out the money teh next day these banks put 5 days hold.