Personal Banker Elaina Patterson Accused of Embezzling over $6 Million from Clients
Elaina Patterson, a former personal banker at Bank of America, embezzled over $6 million from 31 investors and customers, according to an investigation led by Massachusetts Attorney General Martha Coakley that led an indictment.
Patterson persuaded family and friends to invest in fake accounts that offered high interest rates, according to the attorney general. Patterson represented to investors that these high interest accounts were available only to high-level investors and corporations, but she could offer the investments to family and friends due to her position at the bank, according to Coakley.
Patterson convinced family members and friends to invest approximately $4.5 million in these fake investments, according to the attorney general. Patterson allegedly issued fake certificate of deposit receipts and Form 1099s on bank forms to make the investments appear legitimate.
Patterson set up accounts in the investors’ names without their knowledge, put her own address on the accounts, deposited the investors’ funds and used the money both to fund payments to other investors and to funnel money into her personal accounts, according to authorities.
Patterson began stealing money from the accounts of customers in order to conceal her previous theft from investors, according to the attorney general. Patterson stole nearly $1.5 million from 16 different customers by forging signatures on withdrawal slips and she used approximately $400,000 of this amount to pay customers she stole from previously and to fund purported interest payments and other payments to other investors, according to authorities.
The Peiffer Wolf securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting investors with the recovery of their losses. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.