Atlanta Bank Manager Sentenced for Fraud Scheme
Padron Opened Bogus Accounts, Causing Loss of Over $276,000

ATLANTA—JACINTO PADRON, JR., 52, of Roswell, Georgia, was sentenced today by United States District Judge Orinda D. Evans to serve two years in federal prison for participating in a conspiracy to steal U.S. tax return money.

United States Attorney Sally Quillian Yates said of the case, “When a bank employee with access to accounts and authority to override security measures decides to turn to crime, the result is too often a significant loss that goes undetected for too long. This defendant used his authority as a branch manager to open dozens of bogus accounts where over $200,000 in fraudulent federal tax refunds were deposited. As today’s prison sentence shows, we remain committed to rooting out corrupt bank insiders—at all levels—because they can do so much damage to the banks and customers who depend on them.”

“Protecting the integrity of our financial institutions and helping to maintain the public’s trust in our local banks and credit unions is an investigative priority for the United States Secret Service. With the help of our local, state, and federal law enforcement partners, corrupt bank employees who betray this trust by engaging in fraudulent activity will be investigated and apprehended,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.

PADRON was sentenced to two years in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $276,344.70. PADRON was convicted of these charges on November 16, 2011, after pleading guilty.

According to United States Attorney Yates, the charges, and other information presented in court: PADRON was a branch manager for Wachovia (now Wells Fargo) in Atlanta. Beginning in 2009, he participated in a conspiracy to negotiate fraudulent checks and receive fraudulent wire transfers at the branch where he worked. PADRON opened numerous bank accounts at Wachovia in various names and addresses supplied by his co-conspirators. The names and personal identifying information supplied by the co-conspirators belonged to residents of Puerto Rico, including prisoners incarcerated there. After PADRON opened the accounts, the co-conspirators filed fraudulent tax returns in those same names and then arranged to have the tax refunds wired to the bogus accounts or cashed the tax refund checks at PADRON’s branch. When bank security flagged or froze one of the bogus accounts because of the suspicious activity, PADRON used his managerial position to override bank security measures and permit the accounts to be opened and the proceeds to be withdrawn. The co-conspirators paid PADRON a portion of the fraud proceeds for his role in the conspiracy. The conspiracy involved over $200,000 in fraudulent federal tax returns.

This case was investigated by Special Agents of the Federal Bureau of Investigation, United States Secret Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

Assistant United States Attorney Stephen H. McClain prosecuted the case.