February 28, 2024

Former Bank Employee Charged With Million-Dollar Fraud And Embezzlement Scheme

Former Bank Employee Charged With Million-Dollar Fraud And Embezzlement Scheme

Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of KEVIN CHIU, a former business relationship manager at a financial institution headquartered in Manhattan, for a years-long bank fraud and embezzlement scheme to steal over $2 million from his former clients’ accounts.  CHIU was arrested this morning in Brooklyn and will be presented today before U.S. Magistrate Judge James L. Cott. 

U.S. Attorney Damian Williams said: “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.  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.”

FBI Assistant Director Michael J. Driscoll said: “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.  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.”

As alleged in the Complaint:[1]

From at least on or about October 28, 2020, through on or about June 29, 2022, CHIU engaged in a scheme to steal from his clients’ accounts by using fraudulent transaction forms to transfer funds out of their accounts.  He asked at least one elderly client to sign blank transaction forms when she was meeting with CHIU in person and provided that client with fake account statements so she would not know the true balance of her account, which CHIU had largely drained. 

In addition, CHIU transferred stolen funds from some client accounts to others from which he already had stolen to conceal the fraud.  In total, CHIU stole over $2 million from his former clients, several of whom were elderly individual clients. 

CHIU used the money he stole to purchase securities and trade in the market.  He also used the funds for personal expenses.

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CHIU, 32, of Brooklyn, New York, is charged with one count of bank fraud, which carries a maximum sentence of 30 years in prison; one count of embezzlement by a bank employee, which carries a maximum sentence of 30 years in prison; one count of money laundering, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison. 

The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the outstanding investigative work of the FBI. 

The prosecution of this case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Lisa Daniels is in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

Originally published at https://www.fbi.gov/contact-us/field-offices/newyork/news/former-bank-employee-charged-with-million-dollar-fraud-and-embezzlement-scheme