A former Vanguard Group supervisor stole more than $2 million by taking money from dead or inactive customers’ accounts before state treasurers could take custody of the unclaimed money, prosecutors say.
Vanguard has around eight million U.S. retail investment customers and manages over $5 trillion in assets. Its CEO, Mortimer “Tim” Buckley, has said the firm is investing heavily in technology to improve its security, web access, and other legacy computer systems.
Capps left the company in 2014, according to his LinkedIn profile. The scheme might have continued after that, according to the indictment.
Tobin’s case number was unsealed following a request of The Inquirer to Baylson. The complaint against him remains sealed. Other people “known and unknown” participated in the fraud, according to the indictment.
Capps stole passwords from people who worked for him, accessed the computer system to issue checks from dormant accounts that were slated for “escheat,” to be transferred to state treasurers, and had Vanguard mail the checks to his brother-in-law and others not named in the suit.
Vanguard this seriously ticks me off. So many layers of lax security. Is it time to move our money? Or is Fidelity just as bad? Parts of the charges are still sealed. How deep does this go? Is it time to bail?
Submitted March 16, 2019 at 11:50AM by kilamumster https://ift.tt/2Cp9b7d
