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Author Naomi Wolfe Sues Bank For Identity Fraud And Negligence

The Smoking Gun website reported that Naomi Wolfe, author of several best-selling books including "The End of America: Letter of Warning to a Young Patriot," has sued her bank over an identity fraud case and negligence. Wolfe alleges that her bank, WaMu, failed to protect her financial accounts and went so far as to delay any help assisting Wolfe so that they bank could avoid liability to replace the stolen funds. About $300,000 was stolen from Wolfe's account.

Wolf claimed that, after discovering the financial account fraud in 2005, WaMu Wolf instructed her to keep her accounts open while the bank investigated the fraud. As a result, the thief continued to steal money from her account and:

"While she took “reasonable steps to investigate and remedy the losses in her accounts,” Wolf alleges that WaMu sought to “cover its negligence” by impeding her efforts."

If proven in court, this would be a new low for a bank. Wolfe basically claims that the bank delayed fraud investigation due to greed. The bank stood to lose money if it investigated in a timely fashion, so the more profitable route was to not help a customer investigate and resolve identity fraud.

In 2008, WaMu was seized by federal banking regulators and then acquired by JPMorgan Chase. Reportedly, this was the largest banking collapse in the United States. The Wall Street Journal reported earlier this month that a bankruptcy judge has approved an investigation into WaMu's collapse, based in part on the bank's involvement in risky mortgages.

Documents available at the Smoking Gun website include bank emails and a link to the legal complaint. Additional news coverage is at the Huffington Post website.

Comments

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Charles Jeter

Banks haven't been thrilling me with their cooperation towards proper reporting of suspicious activity... This wouldn't be far fetched particularly since it may be a business bank account, not a consumer account.

Any way to find out which account it is?

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