In Hawaii, according to various reports:
Hawaii’s U.S. Attorney Ed Kubo recently announced the indictment of Marilyn DeMotta, 41, a former operations manager at American Savings Bank accused by a bank security manager in 2004 of stealing more than $1 million from 90+ year old bank customer Ada Lim. The alleged ripoff, which included the proceeds from the sale of the victim's investment property, reportedly left the victim penniless.
Upon discovering the theft, bank security manager Bert Corniel pushed for the bank’s senior management to aggressively pursue an investigation into DeMotta and to reimburse Lim the full amount that was stolen. Instead,
the bank's management told Corniel to keep his mouth shut, and subsequently engaged in a coverup to make it look like the stolen money was really a loan from the 90+ year old victim to DeMotta.
One report describes what ocurred next:
- DeMotta picked up three bank employees from the legal and human resources departments and took them to meet with Lim. Bank general counsel Stanley Chong, who suggested the meeting, went along in hopes that Lim would sign a statement saying she had in fact lent DeMotta the money. With big smiles, and candy and flowers in hand, the four bank employees arrived at Lim’s home with the release. She signed it.
- [Bank security manager] Corniel filed a complaint with the FBI in 2005 saying DeMotta alleged stole more than $1 million from Lim between 2003 and 2005. It was his report that triggered a federal investigation by four federal agencies. Corniel was fired from the bank in June 2006. Corniel filed a lawsuit on Aug. 2, 2006, ..., alleging that he was fired in retaliation for blowing the whistle on the cover-up of DeMotta’s theft by the bank’s top senior officials.
On the same day Corniel filed his civil lawsuit against the bank, the 90+ year old victim filed her own civil lawsuit against American Savings for the theft of the money. While initially denying the allegations in both civil lawsuits, American Savings ultimately settled both cases, reportedly for more than $1 million each. The bank executives who played some part in the alleged scheme have since left American Savings.
The criminal indictment, handed up on Nov. 15, 2007, was kept under seal until DeMotta could be located and apprehended in Las Vegas, Nevada, where she has a home.
The 90+ year old victim still owes nearly $500,000 in back taxes and penalties for the sale of the investment property that DeMotta was supposed to have paid out of the sale proceeds, and at this point, has no way to pay the government. Federal officials would not comment on whether other bank officials will be charged in this case, and would only say the investigation involving four federal agencies is ongoing.
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