Former Bank Worker Charged with Stealing More Than $1.8 Million from Employer

A former bank employee was arrested this morning and charged with stealing $1.8 million from her employer and concealing the thefts while acting as the victim’s executive assistant, U.S. Attorney Paul J. Fishman announced.

Karen R. Febles, 47, of Palisades Park, N.J., was arrested at her home by agents of the IRS and FBI and charged by complaint with one count each of bank fraud and money laundering. She was scheduled to make her initial appearance later in the day before U.S. Magistrate Judge Madeline Cox Arleo in Newark federal court.

According to the criminal complaint:

From at least 2000 through September 2011, Febles worked as an executive assistant for a bank in New York City. Her duties included assisting the victim, a retired employee of the bank, with his personal and professional finances. As part of her employment, Febles routinely prepared and negotiated checks on behalf of the victim. Febles was terminated by the bank in September 2011.

A review of the victim’s bank records show that between 2007 and September 2011 at least $1.8 million of the victim’s funds was debited from his bank accounts without the victim’s authorization. A review of checks written by Febles revealed the checks had been altered—after they had been signed by the victim—to add additional sums of money. Once issued, Febles negotiated many of the checks, in cash, for the altered amount.

Posted in: Internal Fraud Money Laundering