A massive US bank has now misled customers in a new lawsuit that alleges the company misrepresented its performance.
A former Green Dot employee alleged Monday that company leaders misrepresented how an important line of business was performing while also knowing about issues that would lead to an expensive Fed investigation.
Leaders at Green Dot concealed critical information about the bank’s declining prepaid card business from shareholders and its customers even though it was core to the firm’s bottom line, former employee and current shareholder Dino DiBlasio alleged in a lawsuit Monday.
The former director of quality engineering also alleged that the executives and directors knew that the firm’s anti-money laundering controls weren’t up to snuff but continued to operate with them anyway, eventually landing Green Dot a costly consent order from the Federal Reserve.
Franknez.com has been reporting the fraud behind the bank that has left retirees without money from various scam and phishing reports.
In keeping such information under wraps, founder and former CEO Steven Streit and former chief financial officer Mark Shifke inflated Green Dot’s price “long enough to sell $62 million dollars of their own Green Dot shares at artificially inflated prices,” according to the lawsuit.
This stock market manipulation is known as a “pump and dump”, usually performed by insiders.
Also named in the lawsuit are directors Jeffrey Osher, Ellen Richey, William Jacobs, Saturnino Fanlo, George Shaheen, Peter Feld and J. Chris Brewster; former directors Kenneth Aldrich, Rajeev Date, and Glinda Bridgforth Hodges; former CEO Dan Henry and current CEO George Gresham.
The complaint was filed Monday in the District Court for the Central District of California.
Green Dot, which is perhaps best known for its digital banking partnership with Walmart, is the world’s largest prepaid debit card company.
It sells its prepaid cards at nearly 100,000 retailers nationwide, including CVS and Dollar Tree, and also operates a banking-as-a-service platform and has a number of co-branded card partnerships.
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Also Read: A Massive US Bank is Now Closing Credit Cards
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A banker is now convicted for stealing money from customers while working at Bank of America over a 10-year period.
The personal banker was arrested after her years-long scam, resulting in nearly $300,000 being stolen, came to light.
Police in Seneca, South Carolina said they received a report in 2013 about missing money from an account with Bank of America.
The victim, who also reported the incident to the Customer Service department, told police he was missing around $30,000.
Investigators worked with Bank of America for several weeks after the crime was reported and learned that an employee who had been stealing money from several people in Oconee County.
The police said the victims would use the Bank of America location in Seneca as their primary bank and Bobbi Cortese was their personal banker.
Seneca Police investigators and the US Secret Service spent nearly a decade doing more interviews.
Meanwhile, Bank of America was given time to complete an internal investigation.
It was revealed that Cortese had stolen nearly $300,000 from four people while working at the bank.
Some of the money was in the victims’ bank accounts for life insurance payouts related to the deaths of their spouses.
Others had a lifetime of earnings that was supposed to be used for their retirement, said police.
Cortese would open accounts under the victims’ names without their knowledge or consent and would perform a “shell game.”
This is when a scammer uses the money from one victim to replace what she stole from another victim.
After investigating further, police said Cortese forged several documents and issued them to the victims to hide the theft.
She committed these acts for about four years while working at the Bank of America, said police.
Cortese was arrested in May 2023 and charged with four counts of breach of trust and two counts of forgery.
She was later fired by the bank, reports The-Sun.
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Also Read: A Massive Bank Now Freezes Money From Direct Deposits
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