BALTIMORE-Authorities are investigating the unauthorized transfer of $252,000 by Johns Hopkins FCU to an overseas figure purporting to be one its members, a renowned international expert in AIDS.
The funds were wired by the credit union in five transactions last September and October to a Middle Eastern bank account at the direction of a man who told the credit union he was Dr. Neil Martinson, who is organizing AIDS relief efforts in southern Africa. The transactions sent to a Beirut bank were for: $115,550 on Sept. 9, $67,950 on Sept. 21, $34,500 on Sept. 30, $16,550 on Oct. 8 and $17,950 on Oct. 21. Dr. Martinson was in South Africa at the time.
But even though the wire requests were accompanied by a faxed copy of Dr. Martinson's passport and what appears to be an authentication stamp of the police in South Africa, where Martinson is from, the doctor, a credit union member since July 2000, insisted he never requested the funds and demanded their return.
The credit union, realizing it was the victim of an identity thief, returned the funds to Dr. Martinson's account and filed a bond claim with CUMIS Insurance Society, which was rejected, according to a suit filed by the credit union last week against the credit union insurer.
Johns Hopkins asserts the fraudulent transfer should be reimbursed because its bond with CUMIS provides coverage for losses "resulting from fraudulent instruction through e-mail, telefacsimile or telephonic means received by you from a person who purports to be your member." The bond also purports to cover losses resulting directly from the "forgery" or alteration of an "instrument" which includes a "withdrawal order."
The suit was filed in the U.S. District Court for Maryland. Credit union officials did not immediately respond to requests for comment. A lawyer for the credit union did not return a phone call seeking comment.
CUMIS defended its position. "We do not believe the facts of the loss meet the requirements for funds transfer coverage under our bond program," a spokesman for the credit union insurer said.
