Legal

Supreme Court Rules Against Defendant In Bank Account Fraud Appeal

The Supreme Court ruled on a bank fraud case earlier in the week that had to do with an online scheme designed to steal funds from bank customers’ accounts.

According to a report by Forbes, the Supreme Court decided in the bank fraud case Shaw v. United States and rejected the defendant’s arguments in a unanimous 8-0 opinion. The court noted that the bank had a property interest in the funds of its customers and held that, even if the bank had insurance to protect from the loss, the statute doesn’t require the bank to suffer financial harm.

According to a federal indictment, the fraud scheme was used to drain more than $300,000 from a U.S. bank account of a businessman in Taiwan. The defendant committed the fraud via a fake PayPal account that was opened in the businessman’s name. The funds were then transferred to other bank accounts the defendant opened in his father’s name, as well as the defendant. Proof that the defendant opened the accounts was provided by way of the internet protocol address, emails on the defendant’s computer with the same IP address, common visitor ID log numbers for various accounts, a fax to PayPal that showed his home telephone number and surname and other information traceable to the defendant, reported Forbes. The defendant went to court and was found guilty by a jury for most of the fraud counts against him. In three of the 17, he was found not guilty. In an appeal, the defendant argued he wasn’t guilty of the bank fraud statute charge he was hit with because there needed to be proof that he tried to defraud the bank, not a person.

——————————

PYMNTS TV LIVE OCTOBER SERIES: B2B PAYMENTS 2021 – WHAT WILL YOU CHANGE? 

Banks, corporates and even regulators now recognize the imperative to modernize — not just digitize —the infrastructures and workflows that move money and data between businesses domestically and cross-border. Together with Visa, PYMNTS invites you to a month-long series of livestreamed programs on these issues as they reshape B2B payments. Masters of modernization share insights and answer questions during a mix of intimate fireside chats and vibrant virtual roundtables.

Click to comment

TRENDING RIGHT NOW