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I have no idea how this went on so long. I work in banking and we have so many automated systems for automatic fraud detection. There is no way the bank should

I have no idea how this went on so long. I work in banking and we have so many automated systems for automatic fraud detection. There is no way the bank should have let the gigantic deposits go unchecked for so long. I’ve had my own checks I write to myself go flagged for far less money. Complete systemic negligence all around.

mamonster 2y ago
I mean I dunno, every year in Investment Banking/Trading there is a new scandal about someone hiding billions of exposure by going around the risk systems. After Kerviel(the SocGen trader who lost 5 billion in 08) most IBs basically "shadowbanned" the Middle Office(risk/compliance/reconciliation) to trading desk lateral, precisely because a middle office guy can hide a lot of risk quite easily.
bee_rider 2y ago
The Army doesn’t need to worry about going out of business I guess, and I’m sure they’ll find a way to recoup a good chunk of this, right?
- paulddraper 2y ago
  He means on the other side of this
- copperx 2y ago
  If they seize and sell the real estate, sure. Jewelry? not so much.
tagyro 2y ago
I guess it depends on the bank? I've also worked in the banking system and my experience is ...a bit different :)
driverdan 2y ago
Why? She had all of her paperwork in order. She could have easily explained it.
yieldcrv 2y ago
the fact that you actually believe your bank's koolaid is hilarious. > I’ve had my own checks I write to myself go flagged for far less money. because they were aberrations. while the person with consistent large checks is not.
benmmurphy 2y ago
Part of the problem is the Army is not receiving goods or services in exchange for this money so if the money is being misdirected it is not immediately obvious. I'm guessing this grant system is able to work based on the reputation of the grantees not to scam the Army but because she was an insider she was able to exploit her position to receive grants without a strong reputation. If people are straight up lying to you its very difficult to detect the fraud unless you bring in an auditor that has the power to get statements directly from the bank and interview suppliers, employees and subcontracters to verify payments are going to where they are claimed.

mamonster 2y ago

I mean I dunno, every year in Investment Banking/Trading there is a new scandal about someone hiding billions of exposure by going around the risk systems. After Kerviel(the SocGen trader who lost 5 billion in 08) most IBs basically "shadowbanned" the Middle Office(risk/compliance/reconciliation) to trading desk lateral, precisely because a middle office guy can hide a lot of risk quite easily.

bee_rider 2y ago

The Army doesn’t need to worry about going out of business I guess, and I’m sure they’ll find a way to recoup a good chunk of this, right?

paulddraper 2y ago
He means on the other side of this
copperx 2y ago
If they seize and sell the real estate, sure. Jewelry? not so much.

tagyro 2y ago

I guess it depends on the bank? I've also worked in the banking system and my experience is ...a bit different :)

driverdan 2y ago

Why? She had all of her paperwork in order. She could have easily explained it.

yieldcrv 2y ago

the fact that you actually believe your bank's koolaid is hilarious. > I’ve had my own checks I write to myself go flagged for far less money. because they were aberrations. while the person with consistent large checks is not.

benmmurphy 2y ago

Part of the problem is the Army is not receiving goods or services in exchange for this money so if the money is being misdirected it is not immediately obvious. I'm guessing this grant system is able to work based on the reputation of the grantees not to scam the Army but because she was an insider she was able to exploit her position to receive grants without a strong reputation. If people are straight up lying to you its very difficult to detect the fraud unless you bring in an auditor that has the power to get statements directly from the bank and interview suppliers, employees and subcontracters to verify payments are going to where they are claimed.