Plot Thickens In New York Fed Heist As $30 Million In Cash Said Delivered To Mystery Chinese Man

Tyler Durden's picture

One week ago, we documented the Hollywood-esque theft of $100 million from accounts held at the NY Fed and belonging to the central bank of Bangladesh.

In many ways, the heist was elegantly planned and executed and in others it was comically amateurish.

Here are the basics: On February 5, Bill Dudley's New York Fed was allegedly “penetrated” when “hackers” (of supposed Chinese origin) stole $100 million from accounts belonging to the Bangladesh central bank. The money was then channeled to the Philippines where it was sold on the black market and funneled to “local casinos” (to quote AFP). After the casino laundering, it was sent back to the same black market FX broker who promptly moved it to “overseas accounts within days.”

Basically, hackers got ahold of Bangladesh’s SWIFT codes and bombarded the NY Fed with requests for funds from the country’s FX reserves. Mercifully, the Fed declined to clear separate transfers worth some $870 million, but not before $100 million got away.

Four transfer requests totaling $81 million went through, but a fifth was held up when whoever was making the request tried to have $20 million sent to an imaginary NGO called Shalika Foundation but accidentally spelled “foundation” as “fandation.”

According to the Philippine Daily Inquirer, the money was routed to three casino bank accounts via the Jupiter Street, Makati City, branch of Rizal Commercial Banking Corp. The country’s gaming regulator was investigating.

Now, we get new details on what is a truly fascinating story.

First, we learn that the hackers who spelled “foundation” wrong weren’t the only ones to do something silly. The requests came in on a Friday, which is notable because as WSJ writes, “Friday is the weekend in Bangladesh and the central bank’s offices were closed.”

So, “the fact that the money was being wired to personal bank accounts in the Philippines rang alarm bells,” but apparently, the fact that it was a weekend did not.

Still, there were people at the office.

In fact, it was a printer error that tipped Bangladesh off to the scam. “Zubair Bin Huda, a joint director of Bangladesh Bank, found the printer tray empty when he looked on the morning of Feb. 5 for confirmations of SWIFT financial transactions that are normally printed automatically overnight,” Bloomberg reports. “Because it was a Friday -- a weekend in Muslim-majority Bangladesh -- Huda left the office around 11:15 a.m. and asked his colleagues to help fix the problem [but] it took them more than 24 hours before they could manually print the receipts, which revealed dozens of questionable transactions that sent the bank racing to stop cash from leaving its account with the Federal Reserve Bank of New York to the Philippines, Sri Lanka and beyond.”

As the story goes, Huda came into the office on Saturday and found a flashing message on the terminal connecting to the SWIFT system that read: “A file is missing or changed.” Finally, once Huda managed to get the things up and running his team found “receipts show[ing] the Federal Reserve Bank of New York sent back queries to Bangladesh Bank against 46 payment orders in different messages,” Bloomberg recounts.

Well at that point, it was panic time but because it was Saturday, no one was home at the NY Fed

Anyway, the crack squad at the Philippine anti-money laundering agency has determined that someone needs to check out the branch manager at the bank where the money ended up. That manager is one Maia Santos Deguito. “[She] is a key player here because if you don’t have the cooperation of the branch manager, this could not have been done,” Senator Serge Osmena, vice chairman of the country’s blue ribbon committee, which investigates major issues, told reporters on Wednesday.

That’s correct. It’s also “slightly” suspicious that the CCTV cameras at the branch weren’t working when the money was withdrawn. Rizal wouldn’t immediately comment on the CCTV “issue.”

Deguito decided to essentially plead to fifth in a hearing and it’s easy to understand why. She apparently ignored requests from the Bangladesh central bank to stop the transfers.

After the money left the bank it went to two casinos and "a man of Chinese origin," according to Reuters

"$29 million ended up in an account of Solaire, a casino resort owned and operated by Bloombery Resorts Corp which is controlled by Enrique Razon, the Philippines' fifth-richest man in 2015, a further $21 million went to an account of Eastern Hawaii Leisure Co., a gaming firm in northern Philippines," and that, according to Teofisto Guingona, head of the Philippine Senate's anti-corruption committee, is where "the paper trails ends" because "casinos are not covered by the country's anti-money laundering laws."

So what of the mysterious "Chinese" man? Well, we don't know. All we know is that he ended up receiveing $30 million in cash in three deliveries via an FX broker called Philrem Service Corp which of course wouldn't talk to Reuters.

Meanwhile, Bangladesh’s central-bank governor, Atiur Rahman - this poor guy...

... took the fall, saying he "took moral responsibility" for the loss. He resigned after seven years at the bank. 

We're sure that any day now, Bill Dudley will set up a small table in his back yard, surround himself with reports sitting in the grass, and fall on his sword as well. After all, it's his "moral responsibility." 

(Bangladesh... hmmm... is that some place we can see from the roof at 33 Liberty?)

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HedgeAccordingly's picture

Sounds fishy. Corzine? Maybe it's Moo Shoo. Did it go to one of these top 10 China start up cities?

Normalcy Bias's picture

Probably some hackers out of Langley running 'Operation Round Eye' or some such...

y3maxx's picture

$30 million was donated to the Clinton fandation.

Casanova's picture
Casanova (not verified) y3maxx Mar 16, 2016 6:58 PM

Steal $30M = you're a thief. Steal $30 TRILLION = You're members of the Federal Reserve >>>

KesselRunin12Parsecs's picture
KesselRunin12Parsecs (not verified) Casanova Mar 16, 2016 7:22 PM

y3maxx wins THE INTERNET today!

RAT005's picture

I wonder if the USA is pissed at someone and deliberately let this hack through. 

We enabled a hack of some folks.

cheka's picture

chinese suspect name released --  fuk u-isteinbergman

MayIMommaDogFace2theBananaPatch's picture

I'm going with @HedgeAccordingly here.

Corzine did receive the cash -- BUT he lost track of all of it.

COSMOS's picture

Where was John Corzine at that time, I hear he has a very good makeup artist.

Also in high school he had the lead role in The King and I.

PT's picture

But the thieves will never get away with it becoz when they try and spend more than $10k at a time it will be reported to the relevant autho- ... ... ..., yes it will, won't it?  Won't it???

BarkingCat's picture

US law. Outside of these borders it is a completely different world.


...but I don't see what the problem is. Every link in that chain knows who is before it and who is after it.

Reverse the transactions. The bullshit that they lost track of it at the casino does not sell. The casino knows who they gave the money to. Grab it from their account and they will get it back or provide the info on who received it.


Urban Redneck's picture

The USD 81M never left the US, it didn't even leave the FRBNY, the money is in Warren Buffet's (Wachovia) account at the FRBNY (and there is a corresponding USD credit on Wachovia books for their customer: Rizal Commercial Banking Corp.).

It doesn't sound like RCBC has USD 30M in banknotes lying around , or they wouldn't have involved F/X brokers. More importantly, what negotiable instrument(s) did RCBC actually give to the F/X brokers, because it wasn't USD, not even digital ones, because they are on the books of Wachovia and cannot be legally registered in the name of RCBC. The provided them either electronic Philippine pesos or a claim on their stolen goods (involving collateral and transformation, not actual USD, much less the stolen USD). Those stolen goods are still in the possession of Warren Buffet, who can only trade those USD with other US banking oligarchs who have accounts at the Federal Reserve. Any claim on the stolen assets should be nullified, and Warren Buffet should be forced to return the USD $81M. The fact that FRBNY is not willing to return Bangladesh's money, despite it being in their custody (FBO Warren Buffet) is one of the problems when you have a PRIVATE MONOPOLY providing a PUBLIC SERVICE with NO LIABILITY.

Turning over rocks in the Philippines only facilitates identifying the culprits responsible for the crime, it does nothing to help locate Bangladesh's missing money, because the money isn't actually missing.

Global Douche's picture

You're correct! That nasty issue of excessive laws is proof that the giant toilet known as Washington DC needs to be flushed IMMEDIATELY, the quicker the better.

Antifaschistische's picture

im confused, I thought the redistribution of wealth was a virtue? whats going on here! Bizarro world.

overmedicatedundersexed's picture

brings back memory of ,6.6 billion stolen in Iraq : from La Times..


"Pentagon officials determined that one giant C-130 Hercules cargo plane could carry $2.4 billion in shrink-wrapped bricks of $100 bills. They sent an initial full planeload of cash, followed by 20 other flights to Iraq by May 2004 in a $12-billion haul that U.S. officials believe to be the biggest international cash airlift of all time.

This month, the Pentagon and the Iraqi government are finally closing the books on the program that handled all those Benjamins. But despite years of audits and investigations, U.S. Defense officials still cannot say what happened to $6.6 billion in cash — enough to run the Los Angeles Unified School District or the Chicago Public Schools for a year, among many other things."

or the 100 mill the got here..

and ZHers worry about 30 mil, LOL.., Free Corzine.


The_Dude's picture

This is a complete Bullshit story to put pressure on the Philippines gov to comply with fascist US banking reporting regulations.  They are one of the few that have told the US to go take a hike!!

RAT005's picture

Exactly what I was thinking but I didn't know who the target could be.  Thanks for the additional color. 

Another idea.  Some USA black ops program just got an additional $30 million in funding.  I just finished a Baldacci novel, happens all of the time. 

cheka's picture

now we know where the next globalist warming earthquake/tsumani/bio event will be

LA_Goldbug's picture

You don't saaaaaaaaaaaaaaaaaaayyyyyyyyyyyyyyyyyyy. First time I hear this "little detail" mentioned.

The other "coincidence" that I just love is Roman Polanski. He cranks out a movie

"Polanski and Harris then turned to Harris' current best seller, The Ghost. They co-wrote a script and in November 2007, just after the book's release, Polanski announced filming for autumn 2008.[10] "

"The Ghost Writer (2010)"

alluding to Bushes Best Buddy across the pond being less than "perfect".

Then Boom Bang Wham, Roman is being pursued by Democratic Justice;

"Court rejects Polanski bid to disqualify L.A. judges

Originally published in The National Law Journal Legal Pad | LA, February 3, 2009"

And after this All Hell is Let Lose on Polanski. Is it a coincidence ????


junction's picture

This stuff happens all the time with the New York Fed as it distributes money around the world, only then it is called "quantitative easing" and there is no investigation.  Much of this money also winds up in casinos, but legitimately, lost at the gambling tables and used to pay off prostitutes for services rendered.  It's good to be a central banker at the Fed.   

cheka's picture

50 lear jets....billion dollar art collection...private shooting ranges.....armed private fed security allowed to carry anywhere/anytime


it's good to be close to satan


turnoffthewater's picture

A lot of spoofing going on here

I M DeMan's picture

No worries.

The DOJ’s Loretta is busy hunting down dangerous foreign soccer officials, and the SEC is too busy watching midget porn. Besides, the money has probably been laundered through Beijing into SF and onto Hongcouver by now with a purchase of some 800sf shack … facilitated by a number of officials, realtors and law firms.

cheka's picture

the soccer brass, a few days before the all-out attack, raised some issues about israel

Global Douche's picture

You've made my week with that comment, deserving of a thousand upvotes or more.

oddjob's picture

Its funny when criminals steal from criminals.

Velo Puck's picture

Yeah baby, we need a cashless society so that this is the norm! What's Dudley's cut from these capers? Loretta Lynch, who sat on the Board of Directors from 2003 to 2005 under Timmy Geithner will make sure all's well no doubt. Just like she and Holder have gone after Wall Street's felons. 

indygo55's picture


NSA, CIA, IRS, FBI they all collectively can know where all this ended up. Isn't this the very financial terrorism they are determined to stop?



HectorCamachoTrump's picture
HectorCamachoTrump (not verified) indygo55 Mar 16, 2016 6:59 PM

"Isn't this the very financial terrorism they are determined to stop?"

No. This is what they are here to protect.

seabiscuit's picture

Or it's an electronic protection racket.

LA_Goldbug's picture

And here it is in practice,

"They have blacklisted dozens of senior Russian officials, separatist commanders and Russian firms accused of undermining Ukrainian sovereignty."

Ms No's picture

The NY Fed has zero credibility.  This whole story is bullshit.  If some zeros were stolen and converted into cash it's probably being used to buy a kid from Silverstein right now, or maybe some weapons for ISIS.

Al Gophilia's picture
  1. Too easy to steal 1s and 0s. Better stay with a cash system.
brada1013567's picture

Aparantly the 30 million just went into crude futures.

css1971's picture

This needs to be a movie.

Wild Theories's picture

poor countries, all slanty-eyed, rickshaw-only chase scenes? don't think James Bond would be interested

SmittyinLA's picture

Yes a movie, but with a politically correct cast of Latino hackers and grifters.

LA_Goldbug's picture

Wait wait there. Officially the Chinese and the Russians are now considered to be "Bad Guys". Islamic Terrorists have been downgraded to "Moderate Rebels" ...... Tra la la tra la la ...

LA_Goldbug's picture

Ahhhh those Latinos are so good at this. But wait, they are related to those Nobel Families of Europe so I shouldn't be surprised !!!

The Art of the Deal: Intermediaries of Trade in Medieval Montpellier

By K. L. Reyerson

Blankone's picture

Off topic:

If the individual nominated by Obama for the supreme court is approved, how many of the justices will then be jewish or from jewish related stock?

How many of the last 15 or so heads of the Fed have been been jewish?

How many of the last 6 heads of the IRS have been jewish?  (really do not know)

What percentage of the US is jewish?

Chuckster's picture

Your CIA director is Muslim........

OurManFlint's picture

Well, your President is a Muslim. 

DetectiveStern's picture

I work in payment investigations and the story just doesn't add up.

turnoffthewater's picture

Good Atiur Rahman may need a reference