Bank Account

Tom Temin: Mr. Levy, nice to have you.

Stuart Levy: Thanks, Tom, for having me.

Tom Temin: Tell us what you were watching. You have asked the Ponemon Institute to conduct surveys of federal entities. Tell us about the investigation and what you discovered?

Stuart Levy: Well, we’ve noticed quite a bit over the last year because UI has had its own challenges. And we were interested to know what other agencies are seeing. And if they were somehow correlated with what we encountered, we were concerned that user experience and anti-fraud strategies were valid or not.

Tom Temin: And what have you discovered? Are they valid or not valid or how do agencies generally fare with all this set of issues?

Stuart Levy: Yes, we have found that agencies are in desperate need of resources to tackle account takeover vectors, fraud vectors, and are also using advanced strategies such as artificial intelligence to pull key insights from massive volumes. of data that can be used to detect fraud in the future.

Tom Temin: In other words, the government is getting more and more into the business of voters having accounts with different agencies, almost like the commercial sector, and therefore, they must have the same level of assurance of the identity of the person accessing this service, that this account is really that person. Is that a good way to put it?

Stuart Levy: This is a great way to put it. Agencies have turned to the document authentication strategy, which works and it’s a great technology. But it doesn’t always work. And that presents challenges from a user experience perspective. So we’ve found that it’s useful to look at the risk base for the identity in question, the person trying to log in and create an account for themselves and spend the money where there is. really have problems with identity fraud, and maybe save some money where there are fewer challenges.

Tom Temin: And what are the best contemporary techniques for doing it? Because clearly all agencies, I think, understand that username and password are desperately too few to do good cybersecurity. And in fact, the White House has now highlighted the push towards multi-factor authentication for any normal connection. So what do best practices look like these days?

Stuart Levy: For the account registration process, the federal government and standards used today point directly to the document authentication approach. But when that – in your opinion, when it doesn’t work well, knowledge-based questions can be considered and there are new technologies that allow us to look at the ownership of a device and a phone number and where we can correlate the attributes. Then maybe we can send a one-time password to this device and then verify the identity in this way. And maybe this account is reviewed and inspected further?

Tom Temin: As you pointed out, something I should have understood is that there are two parts to this whole question. One is the establishment of the account in the first place. And especially with accounts like IRS or Social Security, people want to do it before someone else does it on their behalf. And then once the account is verified and established, make sure that when people visit that account, they are who they say they are.

Stuart Levy: Yeah, there is definitely that. And then, to prevent account takeover, protecting that account with multi-factor authentication, and the emerging standards that come with it, like the FIDO2 standard, are things I think the government should pay attention to.

Tom Temin: And is the FIDO2 standard?

Stuart Levy: A password-less approach endorsed by the World Wide Web Consortium. TransUnion and our competitors have similar technologies and capabilities, but they have yet to be widely deployed.

Tom Temin: We chat with Stuart Levy, the senior director of public sector identity at TransUnion. And those types of factors, other than the password – again, what’s the latest state of the art for this? Because before you would ask the questions you wanted to be asked later, and it was, in fact, like having a second password, because it had to have the precise question and the precise way. you initially grasped the able to overcome this question of challenge. But we’ve gone beyond that whole paradigm now, haven’t we?

Stuart Levy: Well, you are referring to pre-recorded knowledge. Pre-recorded knowledge is a strategy agencies often use to reset passwords or make critical changes to an account, such as a bank account number, and redirect funds to a new bank account. Keep in mind that there are obviously risks associated with this. Pre-check in knowledge were those questions that were usually free text in response, and users tended to not remember those answers. So we come in with the knowledge that they should have just because of who they are and the knowledge that a credit reporting agency has about the consumer. This is for critical changes. Second, for continuous login authentication, there are several strategies available today that are covered by NIST standards to perform multi-factor authentication.

Tom Temin: So what does this look like for the incoming client, so if you are not using the standard username password, but something under FIDO, what do they encounter?

Stuart Levy: Well, they’ve got to have a device, and that device has to be near the computer they’re using. And an encrypted digital key is installed on this device when it first activates it for FIDO2 standard.

Tom Temin: In other words, do you need a smartphone to be able to get the code to enter?

Stuart Levy: Yes, but there are browser plugins available if you don’t have a cell phone either. As long as you own a device and have proven your identity on that device, not only can we detect fraud on that device to begin with, but the FIDO2 standard will allow continuous login access without a password.

Tom Temin: Understood, so people may not have smartphones, there are parts of the population where a smartphone and the account associated with it may be financially out of reach. But maybe they can have a flip phone? They still sell them. Would these people still have the same rights and privileges?

Stuart Levy: Exactly.

Tom Temin: And what about the economy in the arrangement of these different systems?

Stuart Levy: Well, the costliest part is deploying an identity stack to get started. And then using a managed service from a credit bureau like ours, followed by ongoing maintenance and ongoing authentication, usually very, very inexpensively. The most expensive, but very valuable aspect is the continuous review of how the system is working, and ensuring that the fraud is taken care of and that the appropriate strategies are in place, and providing the right kind. experience for users.

Tom Temin: Are there any specific agencies that people should check out that are good at it?

Stuart Levy: There are large, very, very experienced agencies facing government that have gotten very good at it today. Theirs, [Centers of Medicare & Medicaid Services], Ministry of Education for [Free Application for Federal Student Aid] processes are all very good at providing and paying attention to user experience and doing their best to detect and prevent fraud.

Tom Temin: Stuart Levy is Senior Director of Public Sector Identity at TransUnion. Thank you very much for joining me.

Stuart Levy: Thank you for.

Representative image

The Reserve Bank of India recently announced a change in the interest rate rule applicable to overdue domestic fixed deposits in banks and cooperative banks. As per the RBI decision, holders of fixed deposit (FD) accounts in all banks and cooperative banks will get a reduction in the savings deposit rate or FD interest rate contracted on overdue deposits.

“After reviewing these instructions, it was decided that if a term deposit (TD) matures and the proceeds are not paid, the unclaimed amount at the bank will attract the interest rate applicable to the account. ‘savings or the contractual interest rate on the matured TD, whichever is lower,’ the RBI said.

what changed

The previous rule for overdue deposits in banks said, “If a term deposit matures and the proceeds are not paid, the unclaimed amount at the bank will result in the interest rate applicable to the deposits of saving. However, this has now been changed to:

“If a term deposit (TD) matures and the proceeds go unpaid, the unclaimed amount at the bank will attract the interest rate applicable to the savings account or the contractual interest rate to the bank. TD matured, whichever is lower ”.

Likewise, the previous rule on overdue deposits for cooperative banks stated that “if a term deposit matures and the proceeds are not paid, the unclaimed amount at the cooperative bank will result in the interest rate. applicable to savings deposits ”. This has been changed to:

“If a term deposit (TD) matures and the proceeds are not paid, the unclaimed amount at the cooperative bank will attract the interest rate applicable to the savings account or the contractual interest rate on the TD expired, whichever is lower ”.

Implications of the new rule explained

The new rule will apply to FD customers of all banks, including State Bank of India (SBI), HDFC Bank, ICICI Bank, etc. and cooperative banks.

With banks already offering low interest rates on FDs and savings account deposits, the RBI’s new move would not have much of an impact on overdue fixed deposits. As the banks were already charging interest rates on savings deposits on the overdue amount. And the interest rates on savings deposits offered by lenders are generally lower than FD rates.

However, given the declining FD rates among all lenders, the RBI’s decision would ensure that only the lowest interest rate applies to delinquent FDs.

What should clients do?

In view of the new RBI decision, bank customers should either withdraw the FD amount at maturity or reinvest it in a new FD account.

CINCINNATI (WXIX) – More than a week after the news of hacks that deprived countless Ohioans of unemployment benefits, there is no clear process or timeline left for reporting benefits stolen.

“Account takeover” hacks surfaced at the end of June.

Hackers gained access to applicants’ unemployment accounts and changed their bank routing numbers. When Ohio Jobs and Family Services paid for the benefits, they went into the criminals’ bank accounts.

The applicants were excluded from their accounts. They called the ODJFS and were told they could verify their identity to regain access to the account (a process that takes two months) or call the FBI.

ODJFS Acting Director Matt Damschroder answered questions on account hijacking on Thursday.

“We have to operate within a framework established by the Ministry of Labor,” he said, “and that framework requires that we have an arbitration process – to have a finding of fact, essentially – that the person has been victim of identity theft before you can make a duplicate payment.

What is this framework? When will the requesters affected by the hacks have access to it? How long will it take to work?

Damschroder gave no specific answers to any of these questions, leaving victims from all three states like Lawrence Walker, Tori Gessner and Jeff Ingle – not to mention the 20 laid-off workers at an engine factory in Lima – with no hope of securing the money owed to them. soon.

This does not suit State Senator Teresa Fedor (D-Toledo) who has spent the last week discussing the matter with the ODJFS.

Fedor says she wants these victims to be paid now and sees no reason why the ODJFS cannot go directly to the banks to which the benefits have been redirected and collect them.

“It wasn’t stolen from the Ohioans because they never got it,” she said of the missing benefits. “It was stolen from the system. And the ODJFS says: “It’s not our fault, we didn’t do it, we don’t pay double”. And do they have access to the bank account information where the money was fraudulently deposited? Yes they do.

>> Hamilton County woman joins Ohio for more than $ 300 in unemployment benefits per week

The account takeover problem is one of the many issues plaguing the Ohio unemployment system.

Since the start of the pandemic, the ODJFS has paid more than $ 2.1 billion either to fraudsters or to claimants for overpaid benefits. So far, only 7%, or $ 150 million, of that total has been recovered.

Many claimants were hesitant when the agency applied for these overpaid benefits earlier this year. But on Thursday, Damschroder announced that those claimants could file a waiver to keep the money.

Applicants will be required to provide documentation demonstrating that the overpayment is due to employer or government error.

Damschroder expects the system to be up and running within days of the announcement and the review process to begin in August.

The unemployment system has also gained momentum over the past year.

According to documents obtained by FOX19 NOW, the state of Ohio has paid more than $ 89 million to contractors and businesses to support the system as it addresses ongoing issues during the pandemic.

These payments were made from March 2020 to June 2021 and came mainly from federal dollars, according to ODJFS spokesperson Tom Betti.

“The pandemic has created unprecedented hardship for many Ohioans, and we have faced extraordinary challenges in meeting those needs,” Betti said in a statement Thursday night. “In addition to relying on our employees to meet the challenge, our ability to quickly tap into experienced suppliers has enabled us to adapt to these challenges and distribute over $ 22 billion in unemployment benefits to over 2 , 2 million Ohioans in need. “

>> Audit shows Ohio Department of Employment and Family was aware of widespread unemployment fraud, but failed to alert the state

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It was supposed to help people in difficulty get unemployment benefits during the pandemic. Instead, she scammed them and the Get Rich System, federal officials say.

In what prosecutors describe as internal work at the Michigan Unemployment Insurance Agency, a contract worker faces federal charges for allegedly hacking legitimate unemployment accounts and creating new bogus claims that paid her money. She even filed for unemployment on her own behalf, despite the fact that she was actively working for the agency.

“This case involves a corrupt contract employee working for the Michigan State Unemployment Insurance Agency,” an FBI agent wrote in a criminal complaint filed in US district court.

According to the complaint, Autumn Mims, 28, of Birmingham, hacked into the accounts of at least two Michiganders who had filed for unemployment and created additional fraudulent claims that defrauded the government of thousands of dollars in unemployment linked funds to the pandemic. .

The Mims did so, authorities said, by changing the way people contact the employment agency, including changing their authentication email addresses, passwords and account information. banking. She then certified additional claims under the hacked unemployment accounts and diverted the payments to a new bank account she had access to, investigators said.

“In other words,” the FBI agent wrote, “Mims is using his access to facilitate the fraudulent ‘takeover’ of legitimate Unemployment Insurance (Unemployment Insurance) accounts.”

After: Answer Our Damn Calls: Theft Victims Go To Michigan Unemployment Agency

After: Whitmer: Michigan to use $ 300 federal unemployment bonus as incentive to return to work

According to court records, Mims collected nearly $ 15,000 in bogus unemployment claims using his own name, and an additional $ 40,000 using the names of two others – unsuspecting individuals who had filed legitimate unemployment claims, but had their accounts hacked.

Mims, one of dozens of Michiganders accused of pandemic-related unemployment fraud, could not be reached for comment Thursday. Her lawyer, Kirsten Irey, was also not available for comment. Mims, who is out on bail, is charged with wire fraud, wire fraud conspiracy and aggravated identity theft.

According to the complaint, Mims was hired in August 2020 as a contract employee for the Michigan State Unemployment Insurance Agency, as an unemployment examiner. His duties included reviewing, processing and verifying the legitimacy of unemployment insurance claims.

Prosecutors said that shortly after Mims was hired, she began using her insider access to fraudulently process claims on behalf of third parties without their knowledge or permission.

To stop the scam, they said, the Mims fraudulently opened unauthorized bank accounts on behalf of third parties, had bogus claims filed for unemployment in those illegitimate accounts, and then pocketed some of the money. Fly. Mims was also receiving unemployment insurance benefits for herself by claiming she was unemployed.

“These accusations show our continued commitment to prosecute those who attempt to use the COVID-19 crisis to steal taxpayer funds and get rich fraudulently,” he added. Lawyer Saima Mohsin said when announcing the charges.

Detroit FBI Chief Timothy Waters added, “Autumn Mims was hired as a Michigan Unemployment Insurance Examiner to protect taxpayer dollars. Instead, she is accused of abusing her position to steal funds intended for Michiganders in need. “

Mims is no longer employed by the unemployment agency.

According to court records, here is what led to the charges against Mims:

In June, federal and state investigators began investigating Mims after the unemployment agency noticed several anomalies in Mims’ work activity, including that many of the claims she was accessing were unaffected by claims. work items. Additionally, Mims was using her access to make changes to claimants’ unemployment accounts without any evidence that she had spoken with that person or that the claimant had contacted the agency.

Investigators linked activity to Mims through his unique unemployed username, “mimsa” in the state’s computer system. The Mims did not show up daily at the office, but worked virtually from home.

According to state unemployment records, around August 2020, an unemployment claim was filed on behalf of a person identified in the prosecution documents as SM. This was a legitimate request and two payments were made to the account provided by SM.

Then, in December 2020 and again in January 2021, SM received unemployment benefits for a single week ending April 18, 2020.

But state records show that SM has not certified any additional weeks of unemployment benefits. Meanwhile, an audit found that in February, Mims used his employee access to search for unemployment claims associated with a specific address in Detroit. It was a building where SM lived.

State audit records show that Mims granted several claims associated with this apartment building, including SM’s claim, although SM’s unemployment claim was never awarded by the state. to be examined by Mims.

Still, according to authorities, Mims accessed SM’s claims and stole his personal information to help create new claims and get through the two-factor authentication system the state uses to prevent fraud.

For example, when making an application for unemployment, the applicant designates the way in which he wishes to receive the authentication code from the State in order to access his account. When accessing their account, an applicant enters their username and password, receives the state passcode in the preferred manner, enters that passcode, and then is granted the access to his account.

Mims used his insider status to change the authentication email associated with SM’s account, which allowed him to access the account and open certifications for more unemployment benefits.

In order to obtain benefits, a person must certify the weeks that they are eligible for benefits. If this process is done online, as happened in this case, the claimant accesses their unemployment account and electronically “certifies” their claim in the system.

But SM never asked for any additional benefits, authorities said, noting that this was confirmed in interviews with SM.

According to state records, on March 3, Mims changed the password for the SM account, allowing someone other than SM to access the account. Mims then logged into the account and received three weeks of additional benefits.

Two days later, according to records, Mims accessed SM’s unemployment account and changed the bank account the agency was to deposit unemployment benefits into.

The red flags have been raised. On the same day, the state’s fraud detection system triggered an investigation and request for identity verification on SM’s unemployment claim.

Mims understood.

Three days later, Mims re-accessed SM’s account and rejected the fraud investigation and identity verification request, making his fraudulent requests eligible for more benefits.

The next day, three weeks of unemployment benefits certified by Mims herself were deposited into a Bancorp account. The total amount paid was $ 2,195.10.

This has happened multiple times, with different IP addresses used to access SM’s account.

According to court records, SM contacted the employment agency on April 30 and May 3, noting that she could not access her account. Mims had added an email address to the account, according to records, and SM did not recognize it.

On June 30, federal agents and task force agents raided Mims’ Birmingham residence and seized several items, including handwritten personal identification information for third parties, prepaid debit cards in the names of suspected individuals to be victims in this case, bank account information. the list of the alleged victims in this case as account holders; and the receipts for transactions which are suspected to have been made with the proceeds of the unemployment scheme.

Officers also discovered a receipt that showed the debit card associated with the Bancorp account in SM’s name. It had been used to make a retail purchase, but not by SM

Anyone with information about alleged attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Enforcement (NCDF) hotline at 866-720 -5721 or via the NCDF web complaint form at: https: // www. .justice.gov / disaster-fraud / ncdf-disaster-complaint-form.

MUMBAI: Mere mention of a person’s name in a foreign bank’s account opening form does not mean that such person is the beneficial owner of the bank account, according to a recent order issued by the Delhi Bank the Income Tax Appeal Tribunal (ITAT).
An IT manager had estimated that Jatinder Mehra, who had “opened” this bank account, had not disclosed this asset abroad in his tax returns and that the strict provisions of the Black Money Act would apply. Thus, he sought to tax the Rs 5.7 crore (being the funds in this account) in the hands of Mehra.
However, ITAT observed that Mehra had filed an affidavit disclosing full details of the ownership of the bank account. Based on the sole fact of his name mentioned in the bank account opening form and the absence of any other proof relating to the ownership or beneficial ownership of such an account, the sum could not be taxed. in India in the hands of Mehra, ruled the ITAT.
In this case, a complex set of facts were involved. Mehra’s name along with her passport details were on a Singapore bank account opening form.
However, this account was owned by a foreign company – Watergate Advisors, incorporated in the tax haven of the British Virgin Islands. Mehra’s son, a non-resident Indian since 1998, was the director and sole shareholder of this company. Under tax laws, foreign income held by a non-resident cannot be taxed in India.
It all started when a search was carried out in the case of Rakesh Agarwal Group, Baroda, and the details of six trust companies were revealed, one of which concerns this case heard by ITAT. In April 2005, a Cayman Islands-based revocable trust was established by Mehra, and the beneficiaries of this trust were her two sons and a grandson.
The trust deed was revoked in December 2011 and the trust funds (Rs 5.7 crore, if converted to Indian rupees) were transferred to the Singapore bank account. It is this sum that the computer scientist sought to tax in the hands of Mehra, by applying the provisions of the Black Money Act.
At the first level of appeal, the Appeals Commissioner ruled in favor of the taxpayer. But the IT department has filed an appeal with the tax court. ITAT observed that in response to questions from the IT manager, Mehra said he did not even have a copy of the trust deed. His son, in order to show esteem and respect for his father, wanted him to be a nominal settlor of the trust, without having to invest, contribute or pay an amount to the trust.
On the basis of all the facts, the IT department could not prove that Mehra was the owner or the beneficial owner of the sum in the Singapore bank account, the ITAT ruled in favor of the taxpayer.

Overall rating of the bank

Advantages and disadvantages

Savings

You might like the Rio Bank Prestige Savings Account if you can maintain a balance of $ 50 because then you will forgo the monthly service fee of $ 5.76. However, you would earn a significantly better interest rate with a high yield online savings account.

Verification

The Rio Bank Bonus Checking Account makes it easy to waive monthly service fees – you just need to maintain a balance of $ 250. At the end of each month, you will receive 0.20% of the dollar amount you spent on all debit card transactions requiring a PIN or signature.

CD

Rio Bank pays better rates on CDs than many physical banks, but you can still earn more with online banking. Rio also has a Triple Option CD which can pay better rates, but the only option over time is three years, and you will need $ 10,000 to open an account.

Money market account

The only real advantage of the Rio Bank Prestige Money Market Account over the regular savings account is that you can order paper checks. You will need a balance of $ 2,500 to waive the monthly service charge and to earn interest for the month.

How Bank Rio works

Rio Bank is a minority depository institution because most of its board is Hispanic and the bank serves a minority community. It has 15 branches in the following cities in Texas:

• Brownsville
• Edcouch
• Edinburgh
• Elsa
• Harlingen
• Palmview
• City of Rio Grande
• Rome
• San Juan
• McAllen
• Weslaco

You have free access to over 55,000 ATMs in the United States on the Allpoint network.

The Rio Bank mobile app has 4.9 out of 5 stars in the Apple Store and 4.7 out of 5 stars in the Google Play Store.

Customer service hours vary by branch. All branches are open Monday through Friday, and some are open part of the day on Saturdays.

Your deposits are FDIC insured up to $ 250,000, or up to $ 500,000 for joint accounts.

Is Rio Bank Trustworthy?

Rio Bank has no public controversy.

We usually include the Better Business Bureau rating when assessing a bank’s reliability, but the BBB has not yet rated Rio Bank. You might want to read customer reviews online or ask friends and family about their experiences with Rio.

How Rio Bank compares to similar institutions

We compared the Rio Bank to two other Hispanic-American banks located in similar areas of Texas: the Texas National Bank and the Lone Star National Bank.

Rio Bank vs. National Bank of Texas

Rio Bank has branches in more cities than Texas National Bank, so this may be the more convenient option.

Texas National Bank has a free checking account and pays higher rates on longer-term CDs. However, you can get better rates on shorter term CDs with Rio. Your choice could very well depend on where you live and what specific accounts you want.

Rio Bank vs. Lone Star National Bank

Lone Star National Bank has more than twice as many branches as Rio Bank, so there may be a branch closer to you. However, Rio Bank makes it easier to waive monthly service fees.

This article is republished from The Conversation under a Creative Commons license. Read the original article here.

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The big idea

About a quarter of census tracts with a post office do not have a community bank or credit union branch, suggesting that postal banking could provide a financial lifeline to millions of Americans without a bank account. , according to our new research

To reach this conclusion, we analyzed national data on post office retail outlets and bank and credit union branches, as well as other demographic details in these regions. We wanted to understand the prevalence of US Postal Service locations in areas underserved by banks and credit unions.

Our research examined data from US census tracts, which are districts created by the US Census Bureau to geographically represent a neighborhood. The country has 73,057 plots which vary in square kilometers but have a standardized average population of around 4000 inhabitants.

We found that 69% of census tracts that have a post office do not have a community bank – defined as having less than $ 10 billion in assets – while 75% do not have a cooperative branch. credit. And 24% have neither, affecting nearly 21 million people.

Results varied considerably from state to state. For example, in Arizona 44% of areas with a post office do not have a credit union or community bank, while in Nebraska the figure is only 4%. And we have found that members of minority groups tend to be disproportionately located in areas without banks but with a post office.

Why is this important

In 2019, around 7.1 million Americans did not have a bank account and an additional 24.2 million are considered “underbanked,” meaning they use other, more expensive services like lenders on salary and stores that cash checks for a fee to meet their financial needs.

The lack of affordable banking services creates real hardship that disproportionately hurts low-income Americans and communities of color. Without a bank account, people pay higher fees and interest rates, have more difficulty building a credit history, and are less able to obtain mortgages and other types of loans. And during the pandemic, when tens of millions of people in the United States lost their jobs and struggled to feed their families, they had to wait longer to receive the government assistance they were entitled to.

Some lawmakers are pushing the Federal Reserve help solve these problems by partnering with credit unions, small community banks and even the US Postal Service provide free bank accounts to low-income people.

Our research shows that the post office may be better positioned than community banks or credit unions to expand access to financial services.

The United States had a postal banking system, which operated in various forms from 1910 to 1967, when industry pressure persuaded the federal government to end it. Elsewhere in the world, such as the UK and France, postal banking remains popular and serves around 1.5 billion people.

What is not yet known

We still don’t know some details about postal banking services, such as how the targeted communities would benefit from them. However, policymakers, advocacy groups and unions have asked Congress to allocate $ 6 million to support a postal banking pilot program to assess issues like this.

And after

Next, we’ll look at how postal banking compares to other options for expanding access to financial services, such as online and mobile banking.

In states with some of the worst broadband internet usage rates in the country, online banking is largely unavailable and therefore not an option for many residents. We will use data to determine whether the post office offers comparative advantages over online banking.

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BIRMINGHAM, Alabama – Today a father and son were arrested and charged in a bank fraud scheme in which they provided fraudulent information to financial institutions for the purpose of purchasing boats, luxury vehicles and heavy equipment, said U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent Johnnie Sharp, Jr.

26-count indictment filed in U.S. district court Christophe A. Montalbano, 38, from Vestavia, and Gus Anthony Montalbano, 75, from Vestavia, for conspiracy to commit bank fraud, making false statements on a loan application and money laundering. Christopher Montalbano has also been charged with aggravated identity theft and bank fraud. Christopher Montalbano and Gus Montalbano were arrested at their respective homes in Vestavia.

According to the indictment, from 2015 to February 2020, the Montalbano conspired to submit fraudulent information regarding their income to numerous financial institutions in support of numerous fraudulent loan applications to purchase boats, luxury vehicles and heavy equipment. Defendants submitted fraudulent personal and corporate financial statements, tax returns, pay stubs, W-2s, Hull Identification Numbers (HIN) and Vehicle Identification Numbers (VIN) invalid in support of loan applications. In addition, the defendants applied for and obtained several loans for the purpose of purchasing a luxury vehicle without revealing that they had already financed the purchase of the same luxury vehicle from another financial institution. The funds obtained through the fraudulent loans were used to pay for personal living expenses and to make loan payments owed to other financial institutions.

In March 2018 and September 2018, Christopher Montalbano fraudulently used the identity of another person on a loan application submitted to USAA Bank.

The indictment also charges Christopher Montalbano with bank fraud over the Coronavirus Aid, Relief and Economic Security (“CARES”) violation. April 29, 2020, Montalbano submitted to Cross River Bank a fraudulent PPP loan application for LSA Corporation. Montalbano fraudulently represented that the funds he was seeking for LSA Corp. would be “used to retain workers and maintain the payroll or make mortgage interest, rent and utility payments” when in fact he intended to use the funds he obtained from the PPP for personal expenses. On April 30, 2020, Cross River Bank approved and deposited $ 58,153.00 into the bank account of LSA Corporation.

On May 17, 2021, the Attorney General created the COVID-19 Fraud Enforcement Task Force to mobilize resources from the Department of Justice, in partnership with government agencies, to strengthen efforts to combat and prevent pandemic fraud. The working group assists agencies responsible for administering relief programs to prevent fraud by scaling up and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and by leveraging the information and knowledge gained from previous enforcement efforts. For more information on the Ministry’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) hotline at 866-720-5721 or via the NCDF online complaint form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The Federal Bureau of Investigation investigated the case. US Assistant Prosecutors Robin B. Mark and Kristen Osborne are continuing the case.

An indictment contains only charges. An accused is presumed innocent until proven guilty.

A Swede was sentenced today to 15 years in prison for securities fraud, wire fraud and money laundering which defrauded thousands of victims of over $ 16 million.

Roger Nils-Jonas Karlsson, 47, pleaded guilty on March 4. According to court documents, Karlsson ran an investment fraud scheme from 2011 until his arrest in Thailand in June 2019. Karlsson tricked victims into buying shares in the scheme called “Eastern Metal Securities” using crypto – currencies such as Bitcoin and other online payment platforms. Karlsson promised the victims astronomical returns linked to the price of gold. Instead, the funds provided by the victims were transferred to personal bank accounts of Karlsson, and he then used the proceeds to purchase expensive homes, a racehorse and a resort in Thailand. The Karlsson fraud targeted financially precarious investors, causing severe financial hardship for many. time, Karlsson went to great lengths to extend their program, including rebranding, by offering updates and account statements that provided assuring victims of the condition of their assets and offering explanations for late payments – including falsely claiming to work with securities. and the Foreign Exchange Commission (SEC).

As part of the sentence, Karlsson was also ordered to confiscate a Thai resort and various other properties and accounts, and issued a monetary judgment in the amount of $ 16,263,820. The United States seeks redress on behalf of the victims of Karlsson. A restitution order should be made by the court within 90 days. Victims of Roger Karlsson and Eastern Metal Securities who have not been in contact with the United States Attorney’s Office for the Northern District of California are encouraged to submit information as soon as possible. Additional information for victims and a form for victims is available at https://www.justice.gov/usao-ndca/united-states-vs-roger-karlsson-and-eastern-metal-securities.

Acting Assistant Attorney General Nicholas L. McQuaid of the Criminal Division of the Department of Justice; Acting US Attorney Stephanie Hinds of the Northern District of California; and Acting Special Agent in Charge Darrell J. Waldon of the IRS-Criminal Investigation (IRS-CI) Washington, DC, Field Office made the announcement.

The IRS-CI Washington, DC Cybercrime Unit investigated the case. The Department of Justice’s International Affairs Office, the FBI Legal Attaché’s Office in Thailand, the IRS-CI Attaché’s Office in Hong Kong, and the Royal Thai Police’s Crime Suppression Division provided assistance. considerable help. The SEC’s regional office in New York also provided substantial support.

Trial Attorney C. Alden Pelker of the Computer Crime and Intellectual Property Section of the Criminal Division and Assistant US Attorney William Frentzen of the US District Attorney’s Office for the Northern District of California continued the case. Assistant to the US Attorney Karen Beausey of the Assets Forfeiture Unit of the US Attorney’s Office handled the forfeiture process, and Victims Specialist Maria Sunga provided support. Lawyers and interns Seamus Lynch, John Paul, Kate Kaplan and Edward Percarpio also provided essential assistance in support of sentencing.

Golden State, California is home to more than 4 million small businesses stretching from San Diego and Los Angeles north to San Francisco and Sacramento. The state relies on these companies to support its economy. Keep reading to learn more about small business loans in California.

It is right that there are resources to support these small businesses in return! There are many types of California small business loans that can help businesses like yours thrive.

How a Loan Can Help Your California Small Business

Access to working capital has many advantages for small businesses. While cash flow is sometimes an issue, perhaps because your clients take several months to pay their bills, having money in your bank account allows you to still pay your own business expenses.

Loans can be used for anything your business needs, from buying supplies to make products to buying real estate to grow your business.

California Small Business Loan Options

When it comes to business financing, you are spoiled for choice in California.

COVID-19 loans

California has been hit hard by the coronavirus pandemic, and state and federal governments have stepped up to help. At the federal level, there were economic aid programs, including the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL).

In California, the California Small Business COVID-19 Relief Grant Program has provided much-needed help.

Note that these programs may not currently accept new requests.

Bank loans

Financial institutions such as banks, credit unions, and online lenders offer long-term business loans with low interest rates. Note: They are known to be the hardest to qualify at times, so make sure your credit is strong.

SBA loans

Loans guaranteed by the Small Business Administration may be a little easier to obtain, and they also offer long repayment terms and low rates.

There are a variety of SBA loans, from 7 (a) to SBA 504 loans. Some are to be used for specific purposes, such as economic development and community development. Others can be used to cover business expenses, equipment, and real estate.

Credit lines

If you don’t want all of your financing at once, a line of credit gives you access to cash when you need it. If your application is approved, say $ 10,000, you can borrow $ 7,000 now and pay it back, then borrow $ 10,000 and pay it back. It will continue to be available while you pay off what you have borrowed.

Short term loan

Not all business owners in California have outstanding credit, but there are still financing options, such as a short-term loan. Keep in mind that these loans have short repayment periods (sometimes just a few months) and higher interest rates.

Microcredits

Another good option if your credit is not good, microloans provide smaller amounts, usually up to $ 50,000.

How to Choose the Right Loan for Your California Small Business

With so many financing options, it’s important to take the time to think about your financing needs. Are you looking to buy real estate to build a factory there? You may want to consider an SBA or bank loan with a 25 year repayment term so that you can take your time paying off that larger loan.

If you don’t have good credit, you will have to weigh the cost of borrowing higher against the return you would get by reinvesting the money in your business.

How To Qualify For A Small Business Loan In California

Eligibility requirements can vary from lender to lender, but in general, you can expect lenders to consider a few criteria:

• Your credit rating
• How long have you been in business
• Your annual income

Your personal and professional credit scores can be taken into account. Therefore, if you don’t have a professional credit score, learn how to establish business credit. The higher your scores, the better the offers you will be eligible for.

If you are running a start-up you may not be eligible for bank or SBA loans, so look at the qualifications for microloans and short-term loans.

How to get a small business loan in California

Small business owners should provide information about their business and themselves during the application process, regardless of the type of financing they choose.

Some apps, such as those with online lenders, may only request information about your business and its annual income. Others, like the SBA and bank loans, will want more details, including tax returns and financial statements.

You may also be asked for your business plan. If you don’t have one, you can get free assistance setting up one through an organization in the state of California, such as a Small Business Development Center.

Once you are approved for a loan, you will be presented with your loan terms and the loan amount that you are eligible to borrow. If you agree, sign the documents and your funds will be deposited into your business bank account in just one business day.

Alternatives to Business Loans in California

You are not limited to the financing options we discussed above. Here are some alternatives to consider, especially if you are struggling to qualify for bank or SBA loans.

Credit card

Some California businesses find it easier to qualify for business credit cards, and they appreciate the versatility of being able to make purchases when they need to.

Some cards offer 0% APR in the first year, as well as rewards for purchases.

Merchant cash advance

Especially for businesses with poor credit, a cash advance from a merchant could be a good way to access funds. This is an advance on future credit card sales and is repaid daily or weekly through automatic refunds.

Small business grants

While not loans, small business grants can provide the capital you need and they don’t have to be repaid. There are grants for businesses in certain industries, as well as for women, veterans, and minority-run businesses.

The financing your California business needs

With so many financing options there is no reason for your business to be in trouble. Nav can help you find the best financing solution for your needs.

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