Alameda man indicted on fraud, identity theft charges: DOJ

(KRON) – A prepaid debit card scam has landed an Alameda man indicted on more than a dozen counts of bank fraud, according to the Department of Justice.

Nathan Wu-Falkenborg, 49, worked in fraud prevention at Direct Express, which allowed recipients of federal benefits to access their benefits through a prepaid debit card account. Per the DOJ, Wu-Falkenborg used his access to confidential account information to activate and use numerous Direct Express accounts that had been funded but did not appear to be in use from September 2021 and March 2022. 

In the scheme, Wu-Falkenborg fraudulently amassed approximately $800,000 from Direct Express accounts, said the DOJ. He withdrew funds from several hundred ATMs around the Bay Area and made online transactions.

Wu-Falkenborg was charged with 12 counts of defrauding a financial institution, three counts of aggravated identity theft in violation of aggravated identity theft. 

If convicted, he faces a maximum sentence of 30 years in prison and a fine of $1 million for each bank fraud charge, and a mandatory minimum sentence of two years in prison and a fine of $250,000 for each aggravated identity theft charge, according to prosecutors. 

Wu-Falkenborg has since been released on bond and is scheduled to appear in court on July 9.