A former bank employee from Massachusetts has admitted to stealing over $180,000 from the financial institution, federal officials announced Thursday. Derek Aut, a former sandwich maker at a popular sub shop in Revere, pleaded guilty to embezzling funds while working as a teller at a bank in Boston. Aut’s scheme involved forging customers’ signatures on withdrawal slips and moving money between accounts to cover his tracks, according to prosecutors.
The victims of Aut’s theft included an executive residing in Asia and a 99-year-old Boston resident. The elderly woman was the first to report Aut’s theft. Aut spent most of the stolen money on gambling at a local casino, according to the FBI.
U.S. Attorney Leah B. Foley emphasized the breach of trust by Aut, highlighting the need for vigilance in safeguarding customers’ savings. Despite advancements in bank security, Aut managed to exploit vulnerabilities within the financial institution and evade detection for a significant period of time.
Aut pleaded guilty to charges of embezzlement and identity theft, facing a potential sentence of up to 30 years in federal prison. The sentencing is scheduled for June 16, 2025. The bank terminated Aut’s employment upon discovering the theft and cooperated with the investigation.
The case serves as a reminder of the importance of internal controls in preventing financial crimes and underscores the potential risks posed by dishonest employees within financial institutions.
Aut, a former employee at a logistics company, turned to a life of crime by stealing from bank customers after frequent visits to the Encore Boston Harbor Casino in September 2023, as per the FBI. Over a seven-month period, Aut made 31 trips to the casino, spending over $100,000 in cash and losing $32,000. Despite only targeting two bank customers, Aut managed to steal over $180,000 from them combined, court documents reveal.
The first victim, a 52-year-old pharmaceutical executive from Singapore, had multiple accounts at the bank branch, including a trust for her children and a Certificate of Deposit account recommended by Aut. Aut withdrew $156,000 from her account by forging her signature, resulting in nearly $17,000 in penalties for unauthorized withdrawals.
The second victim, a 99-year-old Boston resident, had almost $11,000 stolen from her account in four withdrawals. Aut allegedly used some of the money stolen from the first victim to replace funds in the second victim’s account after she reported the theft at a TD Bank branch near Boston Common.
Aut claimed he needed the stolen money to settle debts due to threats against his family. The theft amount was notably high, with experts highlighting the rarity of such occurrences in today’s banking landscape where stringent security measures are in place.
Despite advancements in security protocols and a significant decline in bank robberies over the years, Aut’s case exposed a critical flaw in the bank’s procedures, allowing him to make withdrawals without proper verification by another employee. Such lapses in oversight can pose significant risks to financial institutions, emphasizing the importance of robust internal controls and verification processes to prevent losses from insider threats.
