A former quantitative analytics manager of a Cleveland-based bank who was hired to help protect customers from fraud was found guilty of stealing the identities of elderly customers to siphon roughly $2 million of their money for personal gain.
Yue Cao, 36, used his access to customer information to steal the identities and money of nonagenarians and centenarians who had never enrolled in the bank’s online services, according to the Justice Department.
Cao did this by creating offshore email addresses in the names of more than 100 victims, which he then used to enroll them in online banking without their knowledge. He directed the victim’s bank statements to the email addresses he created, and because he controlled their online banking, he transferred their money to his own bank and credit card accounts, the DOJ said.
Additionally, while working in a similar position at a second bank – confirmed by a bank spokesperson to be Charles Schwab, headquartered in Westlake, Texas – Cao made unauthorized transactions wherein he transferred his victims’ money to brokerage accounts and arranged trades between the unauthorized accounts and his own brokerage account, according to court documents.
His victims were based in New York, Pennsylvania, Connecticut, Washington and Ohio.
Multiple Cleveland-based banks did not respond to inquiries about Cao’s prior employment. A DOJ spokesperson declined to name the banks involved but said Cao was convicted on all counts involving both banks he worked for.
He was found guilty on 10 counts of bank fraud, four counts of aggravated identity theft and one count of money laundering after a five-day trial. Cao faces between two and 30 years in prison.
A Schwab spokesperson condemned Cao’s behavior in an email to Banking Dive.
“The individual referenced was a former Schwab employee for a very brief period and is no longer affiliated with the firm. When suspicious activity was identified, Schwab promptly investigated the matter and worked with the appropriate law enforcement authorities to prosecute this individual,” the spokesperson said.
“Protecting clients – especially seniors – remains a top priority, and we continue to invest in safeguards designed to detect and prevent financial exploitation,” the spokesperson said.
Sentencing has not yet been scheduled.
