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#2000902 - 03/10/15 10:49 PM Bank to pay $4.9 million
Retread Offline
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Retread
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Posts: 2,548
Southeast
Thought some of you might be interested in this article.


Bank to pay $4.9 million
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#2000905 - 03/10/15 11:23 PM Re: Bank to pay $4.9 million Retread
rlcarey Online
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Galveston, TX
Nothing like turning a blind eye it causing you to cough up 10% of your capital.

Approximately 50 percent of the transactions were returned by consumers and their banks.

Really?? And nobody thought a thing about it?? The fee income must have been outstanding smile
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#2000952 - 03/11/15 01:53 PM Re: Bank to pay $4.9 million Retread
ACBbank Offline
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Joined: Jul 2006
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New York City
Yea. It appears that they were just looking the other way on this one.
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#2001053 - 03/11/15 07:21 PM Re: Bank to pay $4.9 million Retread
califgirl Offline
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http://www.corporatecrimereporter.com/wp-content/uploads/2015/03/cwbcomplaint.pdf

Looks like the penalty is equal to the fees earned by the bank.
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#2001056 - 03/11/15 07:37 PM Re: Bank to pay $4.9 million Retread
CULady Offline
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Joined: Sep 2007
Posts: 495
WA
"Postal inspectors additionally seized property purchased by V Internet’s owner with the proceeds of his fraudulent activity, including five airplanes, a Land Rover, a Dodge Charger, multiple tractors, five all-terrain vehicles and a fire truck."

A FIRE TRUCK?! Who the heck owns a fire truck?!

I like how Commerce Bank worked with V Internet to block the banks that complained... That was smart... *eye roll*

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#2001058 - 03/11/15 07:56 PM Re: Bank to pay $4.9 million Retread
Princess Romeo Offline

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WOW - Reading that complaint is like watching an episode of American Greed. That was stomach churning.

And we wonder why BSA examiners come down hard on banks that have these types of accounts...., it just takes a few bad actors like this to make it more difficult for banks that work hard to follow all of the rules.
Last edited by Princess Romeo; 03/11/15 08:03 PM.
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#2001065 - 03/11/15 08:28 PM Re: Bank to pay $4.9 million Retread
Compl101TX Offline
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Joined: Aug 2010
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W. TX
From the complaint:

CWB’s primary contact with V Internet (“CWB Official No. 1”) reported to CWB’s CEO that “[w]e have hit gold with this relationship, it will be expanding. The founder, [V Internet Owner], would like to meet you and take you flying in his
Russian fighter jet.”


"we have hit the radar with a number of major banks and it is now impacting CommerceWest financially . . . we would not be able to defend our processing these items with so many returns for reasons other than [insufficient funds] to our regulators"

The CEO knew about it but didn't do anything to stop it. I wish they had disclosed the name of "Official 1." That person doesn't deserve to work at any financial institution ever.

Last edited by Compl101; 03/11/15 09:16 PM. Reason: spelling
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#2001218 - 03/12/15 04:11 PM Re: Bank to pay $4.9 million Retread
califgirl Offline
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Joined: Mar 2002
Posts: 2,355
The O.C., California
This looks like the 'V Internet Owner.'

http://www.vegasinc.com/business/2011/aug/01/wanna-ride/
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