Bernanke's other banking problem: Identity theft
Filed under: People
Some critics of recently reappointed Federal Reserve Chairman Ben Bernanke argue that he was too slow to realize that the financial system was teetering on the brink of collapse during 2008. But Bernanke might have had another, more personal banking issue on his mind at the time, Newsweek reports: his wife Anna's purse was stolen in August 2008, and the thieves used its contents to access the couple's joint checking account.
A court affadavit filed in June shows that 10 people are charged in the fraud, which used the Bernankes' bank account to inflate the value of other accounts that then had money withdrawn from them. The 22-page document identifies a victim known as "B. B.," who had $900 stolen from his account, but another complaint against one of the alleged members of the ring used Ben Bernanke's full name.
The thefts affected more than 500 people in Washington, D.C., and Chicago, where the ring operated. Anna Bernanke reported that her purse was stolen from a D.C.-area Starbucks (SBUX) coffee shop.
The Bernankes are hardly alone in their conundrum, according to the Identity Theft Resource Center, which estimates that identity theft costs consumers and businesses more than $55 billion annually. Some 650,000 complaints of identity theft are registered annually, another source reports. Concerns about the crime have dramatically increased in recent years, as the amount of personal information stored online -- and vulnerable to hackers or security breaches -- has grown with online commerce.
The ringleader of the thefts was a 52-year old Maryland man, Clyde Austin Gray Jr., who has pleaded guilty in the scheme, which cost 10 banks $2.1 million. And as Bernanke would know, that's money the banks can ill afford to see walk out the front door.
Let's hope it had more to do with his confidence in the FDIC guarantee than a lack of understanding about what was going on under the hood of Wachovia's pick-a-pay portfolio.
James Cullen edits and writes at CollegeAnalysts.com. He has no personal position in the stocks mentioned above.
Reader Comments (Page 1 of 3)
8-26-2009 @ 5:29PM
ken said...
This is a funny story. While this man is helping screw up our economy,he is being robbed
Reply
8-26-2009 @ 6:13PM
kay said...
My initial reaction was, "How freaking funny is that." But, of course, I was wrong. I'm sorry, but that is the least of his worries. He should be worried about what Obama is doing to us. I'd bet no person expected Germany to turn out the way it did before WWII; so, no one believes WE could turn out that way, but we can, we are, and we need to STOP IT NOW!
8-27-2009 @ 11:40AM
majian15737 said...
Hey everyone,
Are you looking for a business partner or a wealthy great looking soulmate?
Free sign up on _____SeekaMillionaire.Com____to search them out!We have more than 1,200,000 members including: lawyer,CEO,manager,model,actor,doctor,hollywood celebrities,althlets,investors.......
Tt is totally Romance to communicate with each other...
8-27-2009 @ 3:46PM
bailoutsos said...
"Some critics of recently reappointed Federal Reserve Chairman Ben Bernanke argue that he was too slow to realize that the financial system was teetering on the brink of collapse during 2008." ---- Paulson and he knew what was happening to the economy. Paulson took several trips, before the meltdown, to China to assure them their investments would be covered by the American government.
8-26-2009 @ 6:44PM
ken said...
Kay
You are correct we the people have to do something about this. starting in 2010 start electing independent candidates to the available seats in the house and senate. If we keep electing the democrats and republicans we will have the same corrupt politics in Washington. Big business and big money controls both parties and no matter who we elect from either one of these 2 parties will be controlled by the party and big money. We need people in Washington to listen to the people and do what is good for the people.
Reply
8-27-2009 @ 12:38PM
Patty said...
What we all need to do is encourage our governors to leave the union! Cancel all credit cards, take all $$$ from banks, close 401 k pay offf mortgages! Our banks have to collaspe in order to restore sanity! Please go to youtube watch Obama's Deciet it's happening as we write! S.S payed to prisioners for service in his private civillian army, prision camps being constructed, millions of fema coffins, seniors being denied ss raise because they dare to oppose him! CIA being destroyed right before our eyes ACLU running our country morals? We must follow the $$$ fed gov must be abolished Obama is just the talking head it's much bigger than him! Watch GLENNN BECK PLEASE! 5:00 fox news daily please Senators & rep are afraid to speak out & I can understand their fear! And please don' t fall for the swine flu propaganda it's a manufactured crisis Those shots will be poision YOu're an idiot if you have one!
8-26-2009 @ 6:47PM
Davey Rockefeller said...
He's not smart just a front for the real banksters. They've stolen over 24 trillion and counting and in section 8 of the "bailout bill" it says they can dip into the US Treasury and take as much as they want without oversight from Congress or a court.
Made their big move installing Bush in 2000, then pulled 911, the anthrax, Patriot Act, torturing, invading Iraqistan for oil and Caspian gas, cut their taxes, and looted everyone's 401K plans taking out their opposition on Wall St. Be careful in the market and use stops this isn't going to last unless jobs are being created. Next "bubble" is the dollar.
Reply
8-26-2009 @ 6:47PM
Cathy C. said...
I deal with people that have had their wallets and purses stolen all the time and you can bet the only reason those taking his wifes pusre got caught is because who he was. If this were you or I...We'd still be sitting at the local police station filling out reports, calling credit card companies, going to the DMV, Bank and Social Security office trying to prevent a mess down the line. I've seen it, where, within 20 minutes a stolen credit card was being used at a Shell station to fill up three cars...Almost a 4th car when the station felt something wasn't right and called it in. Theives move fast, so you have to be faster,
Reply
8-26-2009 @ 6:53PM
meleagrid said...
Ain't that a bite in the arse??
Reply
8-26-2009 @ 6:59PM
JJGOFAST said...
HE IS NOW GOING TO HAVE TO TRANSFER FUNDS FROM HIS SWISS BANK ACCOUNT..
Reply
8-26-2009 @ 7:21PM
Tspoon said...
Goes to show you . No can escape from some of the vile that walks the earth in the form of people. Fu-king predators everywhere you turn. I swear some of these idiots, From hacking to car jacking,robbing to road rage. Terrible aspects of our world. He is lucky they only got 900 dollars,or so they report. But you know they get you from all sides. The hood on the street or a payday title loan office. Wherever you bend over you can bet you will be immediately accomedated.
Reply
8-26-2009 @ 7:30PM
Michael said...
Bernanke is so cheap, he should have called LIFELOCK.com. I am sure the FBI will get on this issue Post Haste. The rest of us hae to deal with it ourselves. Bernanke does not even work for the US Government. The Fed is as much a Federal property as Federal Express.
Reply
8-26-2009 @ 7:50PM
OneWith said...
Should we bail him out?
Reply
8-26-2009 @ 7:55PM
Clark Celmayster said...
NEVER LOST IT JUST LET GEITNER USE THE Cards, then claimed them lost..
Reply
8-26-2009 @ 8:23PM
BobGrumbine said...
Amazing that the guy has personal experience with the criminals yet refuses to conform his criminally abrogative FRB to the requirements of Article IV of the US Constitution Amendments. No illegal searches, such as those facilitated by criminal publication of confidential personal financial information on infinitely hackable web sites. No illegal seizures, such as those inflicted by FRB's theft systems of EFT, ACH, POS, and Check21, none of which have any validation whatsoever from the owner of the money stolen but only the pretense of the criminal thief who got the routing numbers from those criminally facilitative web sites and/or by copying from real checks so as to vacate financial accounts.
I must disagree that Burn Yankee was "blindsided" by the pretended meltdown. It was he and his British Lord criminal mastermind predecessor Greedspan who caused the entire mess with their criminally abrogative leadership in violation of Article IV of the US Constitution Amendments.
Reply
8-26-2009 @ 10:03PM
mike said...
Let's see, you lose your purse, you put a hold and stop payment on everything. hmm, I guess that would have been to easy..........
Reply
8-26-2009 @ 11:33PM
David Jacquot said...
The Government itself is a large source of Identity Fraud data. See the below press release.
****************************************************************
IRS and Justice Department Illegally Release Citizen’s Tax Returns to Alleged Criminal
The Office of the Treasury Inspector General for Tax Administration (TIGTA), in case number 62-0907-0071, is investigating the release of over 970,000 documents by the government to the defendant in U.S. v. Jacquot (CR 08-1171) in the Southern District of California. The documents released contain thousands of disclosures of tax returns, social security numbers, and other sensitive data of citizens and businesses.
The recipient of these documents is David Jacquot, an attorney, retired Army officer and disabled, decorated combat veteran. He has been accused of filing false tax returns, a charge he vehemently disputes.
Pursuant to the Federal Rules of Criminal Procedure, Mr. Jacquot requested the government provide him copies of specific items of relevant evidence held by the government. Rather than respond to these specific requests, Assistant United States Attorney (AUSA) Faith Devine provided Mr. Jacquot electronic copies of 971,123 documents in 1,271 folders. The complaint alleges that AUSA Devine provided all these documents in an attempt to bury the relevant information amongst so many other documents that review of the same would be impossible before trial. Any meaningful review of nearly 1 million documents would likely take a year or more. The documents disclosed are packed with tax returns and other sensitive data of former employees, financial advisors, customers and vendors of the xelan family of companies. The complaint also describes how this information had been released to other individuals in addition to Mr. Jacquot.
When Mr. Jacquot realized what had been improperly provided to him, he contacted TIGTA, stating “None of these people have ever met me or likely even know that I exist, yet their social security numbers and other confidential tax return information has been provide to me (and others).”
Tax returns and information relating to tax return (such as social security numbers) is considered confidential under federal law. The IRS can only release this information to the Department of Justice under strict conditions, and release to third parties is subject to even more strict rules. The complaint describes how IRS Supervisory Special Agent Sara Brana, IRS Special Agent John Weeks, IRS Special Agent Van Nguyen, and other IRS employees willfully and improperly provided confidential tax return information to the Department of Justice. The complaint then describes how AUSA Devine and other IRS and Justice Department officials willfully released confidential tax return information to Mr. Jacquot and others. Willful unauthorized disclosure of confidential tax return information is a felony offense carrying a maximum penalty of 5 years in jail for each improper disclosure. Federal law also requires mandatory firing of government employees found guilty of willful unauthorized disclosures.
The TIGTASpecial Agent handling the investigation is Daniel Munoz, telephone number: (619) 615-9553; email: Daniel.Munoz@tigta.treas.gov. A copy of the complaint filed with TIGTA (with sensitive tax information removed) can be found at www.jacquotlaw.com/vindictive-prosecution.html.
TO VIEW THE ACTUAL PRESS RELEASE VISIT: http://www.prweb.com/releases/irs-unauthorized/disclosure-tax-return/prweb2792634.htm
Reply
8-27-2009 @ 1:15AM
mtnmanjames123 said...
Funny, another imposter gets his just desert. What goe's around, comes around.
Reply
8-27-2009 @ 4:47AM
Kelly said...
LOL, now that is RICH!! Now, if he would just fall victim to an AUDIT!! AUDIT THE FED . COM!!!!
Reply
8-27-2009 @ 5:49AM
MyKisa said...
....all monetary problems stem from the fed reserve
Reply