ADENIYI ADEYEMI, has been indicted on charges of grand larceny, identity theft, money laundering, scheme to defraud

Manhattan District Attorney Robert M. Morgenthau announced today a 149-count indictment of a computer technician for stealing the identities of more than 150 employees of the Bank of New York Mellon and using these identities to orchestrate more than $1.1 million in thefts against charities and non-profits, among other institutions.

The defendant ADENIYI ADEYEMI, 27, of Brooklyn, has been indicted on charges of grand larceny, identity theft, money laundering, scheme to defraud, computer tampering, and unlawful possession of personal identification information. The crimes charged in the indictment occurred between November 1, 2001 and April 30, 2009.

The investigation leading to today’s indictment revealed that ADEYEMI was employed as a computer technician at the headquarters of the Bank of New York at 1 Wall Street and other Bank of New York locations in Manhattan. In the course of his tenure at Bank of New York, ADEYEMI stole the personal identifying information of dozens of Bank of New York employees, mainly in the Information Technology Department, where he was assigned. In the years that followed, ADEYEMI used the employees’ personal identifiers to open over 30 bank and brokerage accounts in their identities with several financial institutions, including E*Trade, Fidelity, Citi, Wachovia, and Washington Mutual. These accounts served as dummy accounts for the purpose of receiving stolen funds. ADEYEMI then stole money from the bank accounts of charities and non-profit organizations and funneled it into the dummy accounts, later withdrawing the stolen funds or transferring them to a second layer of dummy accounts. In the interests of facilitating donations, many charities readily disseminate their banking details on the Internet, making them easy prey for unauthorized withdrawals by identity thieves, particularly those with computer expertise such as ADEYEMI. Most of ADEYEMI’s theft was perpetrated over the Internet.

For example, in July 2006, ADEYEMI opened a dummy account with E*Trade, an online brokerage, in the name of a Bank of New York employee from the Information Technology Department. Over the course of the ensuing two months, ADEYEMI transferred money online from the bank account of Goodwill Industries of Greater New York and Northern New Jersey into the dummy account. By the time the fraud was uncovered, ADEYEMI had stolen $120,000 from Goodwill Industries. ADEYEMI spent nearly $70,000 of that total on money orders from the United States Postal Service (USPS), and withdrew the remainder in cash or transferred it to other dummy accounts. Other victimized organizations include Iris Ministries, the Kalgidhar Trust, the Sudanese American Community Development Organization, Ravi Zacharias International Ministries, AFK Foundation, the American Community School at Beirut, the Jacksonville Humane Society, American Friends of Birdlife International, the International Association of Women Judges, the Space Generation Advisory Council, and the American Association for Clinical Chemistry.

ADEYEMI also stole from the Bank of New York employees themselves. Exploiting his theft of their personal identification information, ADEYEMI changed the contact information associated with the employees’ online banking profiles, took control of their online banking capabilities, and wired money from the employees’ personal bank accounts to dummy accounts he had established. To avoid scrutiny, ADEYEMI structured all such wire transfers to be just under $10,000, the threshold at which all financial institutions must report transactions to the United States Treasury. ADEYEMI stole more than $128,000 by compromising Bank of New York employees’ online banking profiles in this manner. Among other purchases, ADEYEMI used these stolen proceeds to buy additional USPS money orders. All told, ADEYEMI purchased more than $100,000 in USPS money orders using stolen funds. ADEYEMI redeemed these money orders, among other things, to pay personal expenses such as rent on his apartment and his credit card bills. ADEYEMI also redeemed USPS money orders to ship substantial volumes of goods overseas, primarily to Nigeria.

ADEYEMI came under surveillance by the New York/New Jersey Electronic Crimes Task Force of the United States Secret Service when suspicious Internet activity traced back to wireless Internet connections in ADEYEMI’s apartment building, and mail connected to the fraud was delivered to the various apartments within the building. In executing a court-authorized search warrant of ADEYEMI’s apartment on April 30, 2009, investigators found dozens of Bank of New York employees’ credit reports on his computer, along with many other documents containing personal identifying information of more than 150 Bank of New York employees. In a storage locker ADEYEMI rented, the investigative team found notebooks containing hundreds of names, social security numbers, account numbers, and other personal data, along with numerous credit cards in Bank of New York employees’ names. Investigators also recovered $30,000 in cash from ADEYEMI’s apartment. ADEYEMI was arrested in the course of the search warrant execution, and has remained in custody since.

ADEYEMI has been indicted on one count of Grand Larceny in the First Degree, 138 counts of counts of Identity Theft in the First Degree, one count of Money Laundering in the First Degree, one count of Computer Tampering in the First Degree, two counts of Money Laundering in the Second Degree, three counts of Grand Larceny in the Second Degree, two counts of Scheme to Defraud in the First Degree, and one count of Unlawful Possession of Personal Identification Information in the Second Degree.

Grand Larceny in the First Degree and Money Laundering in the First Degree are class B felonies which are punishable by up to 25 years in prison. Computer Tampering in the First Degree, Money Laundering in the Second Degree, and Grand Larceny in the Second Degree are class C felonies which are punishable by up to 15 years in prison. Identity Theft in the First Degree is a class D felony which is punishable by up to 7 years in prison. Scheme to Defraud in the First Degree and Unlawful Possession of Personal Identification Information in the Second Degree are class E felonies which are punishable by up to 4 years in prison.

The investigation is continuing. ADEYEMI will be arraigned today in State Supreme Court before Justice Carol Berkman, Part 71.

Mr. Morgenthau thanked the Bank of New York Mellon, particularly Vice President for Corporate Security George Sulfaro, for the bank’s assistance in uncovering the scope and depth of the data breach; and the New York/New Jersey Electronic Crimes Task Force (ECTF) of the United States Secret Service, particularly Special Agent Prasanth Kurian, lead investigator on the case, and Special Agent Robert Novy, supervisor of the ECTF.

Mr. Morgenthau also thanked investigators from the following institutions: JPMorgan Chase Bank, E*Trade, Fidelity Investments, Bank of America, Wachovia, the New York Police Department, and the United States Postal Inspection Service.

Assistant District Attorney Ehren Reynolds is handling the prosecution of the case and presented it to the Grand Jury, under the supervision of Assistant District Attorney Antonia Merzon, Chief of the Identity Theft Unit. Investigative Analysts Lindsay Kosan and Michelle Ragusa assisted in the investigation, and Senior Forensic Examiner Richard Brittson also assisted. The District Attorney’s Investigation Bureau assisted in the investigation, under the supervision of Chief Joseph Pennisi.

Defendant Information:

ADENIYI ADEYEMI, 9/12/1982
565 Prospect Place
Brooklyn, New York

Comments

Popular posts from this blog

DISTRICT ATTORNEY VANCE ANNOUNCES INDICTMENT OF SIX SUBCONTRACTING COMPANIES AND THEIR OWNERS IN MULTIMILLION-DOLLAR FRAUD

Seth M. Harris Has Been Charged in $3.7 Million Bank Fraud Scheme

Disability Doctor Peter J. Ajemian Sentenced In Manhattan Federal Court To Eight Years In Prison For His Role In LIRR Fraud Scheme