Members Plunder Bank Crippled by Sept. 11 Terrorist Attacks
Aug 12th, 2002 • Posted in: NewsNEW YORK
As many as 4,000 members of a New York credit union used a computer glitch caused by the collapse of the World Trade Center last September to steal $15 million through bogus ATM withdrawals, New York authorities said last week.
Sixty-six people have been arrested on charges of stealing as much as $18,000 each by deliberately overdrawing their accounts at the Municipal Credit Union. Thirty-five others are being sought, according to the New York Times.
Authorities say the credit union’s computer system was crippled when the World Trade Center, located across the street, collapsed during the terrorist attacks of September 11.
Although bank officials knew their account tracking system was damaged, they decided to let the credit union’s members — municipal employees, including firefighters, police, and teachers — continue making withdrawals.
“We did this at a time of crisis in the city because many of our members are firemen, policemen, and we felt at the time it was a necessary step for us to take to help settle down the city,” Thomas Siciliano, general counsel of the Municipal Credit Union told the Times. “We did not realize on the first day that there would be this kind of loss.”
Over the next two months, that loss would climb to $15 million as thousands of credit union employees and members plundered the bank’s accounts, withdrawing up to $500 a day whether or not their accounts contained the funds.
“This is a prime example of no good deed goes unpunished,” New York District Attorney Robert Morgenthau lamented last week. “People took advantage.”
Morgenthau and his team last week began arresting those accused of stealing more than $1,000 and making no effort to repay the funds when confronted. More than 1,700 people stand accused of overdrawing their accounts by at least $3,000.
Announcing last week’s arrests, New York Police Commissioner Raymond Kelly pledged to crack down on this and other scams stemming from last year’s attacks. “Anyone who thinks they can profit from the World Trade Center aftermath is sorely mistaken,” Kelly warned.
Print This Story
Email This Story
