LOS ANGELES
The mastermind of a bank scheme where Wells Fargo employees stole customer account data to steal from accounts plead guilty to fraud charges, federal officials announced Friday.
Ronald Charles Reed, 69, of Inglewood, plead guilty Thursday to felony counts of bank fraud and aggravated identity theft.
Reed was among eight defendants who were charged in two indictments returned by a federal grand jury last year.
Three of the defendants charged in the case have not yet been identified, and authorities are seeking the public’s help in identifying and apprehending the currently unknown individuals.
Reed, who is also known as “Disco Ronnie,” plead guilty before U.S. District Judge Fernando M. Olguin,.
Olguin scheduled sentencing for July 15. Reed is facing up to 32 years in federal prison, according to officials.
“Schemes involving bank insiders are particularly difficult to investigate,” said U.S. Attorney Eileen M. Decker. “But in this case, the FBI and Secret Service diligently worked to uncover the mechanics of the scheme and those responsible for the losses suffered by the bank. I want to compliment the special agents involved in this matter, as well as Wells Fargo for cooperating in the investigation.”
When he plead guilty, Reed admitted that he worked with former Wells Fargo employees and the three unknown individuals in a scheme that caused Wells Fargo to suffer hundreds of thousands of dollars in losses.
Reed will pay $600,000 in restitution, officials said.
Reed recruited four Wells Fargo employees in 2013 and 2014, asked them to access the bank’s computer records. Reed then purchased personal identifying information or PINs belonging to bank customers, including dates of birth, account numbers, driver’s license numbers and social security numbers, according to officials.
With this information, the currently unidentified “runners” used fake IDs to impersonate bank customers and made substantial cash withdrawals from the customers’ accounts.
In some cases, officials said the runners also used the customer’s account to deposit worthless checks and receive cash back. The fraudulent transactions were made at Wells Fargo branches across Southern California and in other states, including Minnesota and Nevada.
Reed also admitted that in 2014 he purchased the PINS at U.S. Bank – but the information was for an undercover account and was supplied by a confidential informant who was working with law enforcement.
Three former Wells Fargo employees involved in the scheme previously also pleaded guilty and are pending sentencing. A case against one former Wells Fargo employee is still pending.
“The FBI is seeking the public’s help in identifying three individuals who participated in the scheme by going into bank branches with fake IDs to illegally access customer accounts,” said FBI Assistant Director in Charge David Bowdich. “Anyone with information is urged to call the FBI’s Los Angeles Field Office at 1-888-226-8443.”
The FBI and the U.S. Secret Service investigated this case.
Wells Fargo Bank fully cooperated during the investigation.