The Navy Federal Credit Union and the Cybercrime Support Network have formed a new partnership to protect members from outside cybercriminals, including those who pretend to be Navy Federal employees to gain access to member accounts to steal money. ‘silver.
But the nation’s largest credit union recently had two cases in which real Federal Navy employees stole members’ funds.
The first case involved two former Florida-based Navy Federal employees who allegedly worked together to steal between $75,195 and $99,381 and attempted to steal between $122,000 and $165,650 after taking screenshots of members’ accounts . The second case involved a Virginia woman who stole more than $7,000 from members of the Federal Navy after she obtained account information from a former Federal Navy fraud investigator who became an informant for the police. She then attempted to hire a hitman to assassinate the fraud investigator, a police officer, and her ex-husband.
“Navy Federal takes allegations of fraud seriously. We are cooperating with authorities to resolve these cases and to ensure that any members who may have been affected are cured,” a Navy Federal spokesperson said.
Four felony charges have been filed against Stephon Q. Pugh Davis, 27, of Pensacola, Fla., a former Navy Federal customer service representative, and Tiwaun Jamer Williams, 27, also of Pensacola, a former employee of the Federal Navy Mailroom.
A Navy Federal Global Security investigator contacted the Florida Department of Law Enforcement (FDLE) for Escambia County last June regarding suspected internal fraud.
According to an FDLE affidavit and arrest warrant, another Navy Federal employee reported to the Navy Federal Fraud Investigator that she had been recruited by Williams to provide information about the members’ account in money exchange.
The credit union‘s fraud investigator interviewed Williams who admitted to the alleged scheme. After recovering the Williams’ Navy Federal issued mobile device, Florida investigators discovered numerous screenshots of members’ account information.
According to Florida investigators, Pugh-Davis, as a customer service representative, had access to member account information. He allegedly took screenshots of members’ accounts and sent them to Williams. Shortly after receiving the screenshots, Williams called the Federal Navy Contact Center and claimed to be the owner of an account and transferred funds from that account to another member account, which belonged to a “money mule” associated with Williams, according to investigators.
Once the money was transferred from the victim’s account, the funds were often immediately transferred from the mule’s account to mobile payment platforms, according to FDLE investigators.
It is estimated that 22 to 32 accounts of Federal Navy members were compromised.
Williams pleaded not guilty to the charges and Pugh-Davis pleaded not guilty, according to court records. Both men are due to appear for a court hearing in June.
In March, Cassie Crisano pleaded guilty to nine counts of fraud, theft and receiving stolen credit card information stemming from allegations made by Terry Linton, a former Navy federal fraud investigator.
She was originally charged with 20 felony counts in February 2018, according to court documents.
But in 2017, Linton was arrested for attempting to solicit sexual favors through his computer from what he believed to be a minor who turned out to be an undercover police officer, Virginia District Attorney George Elsasser said.
Hoping to ease his legal troubles, Linton told police he gave account information to a Crisano Navy Federal member, which she used to make more than $7,000 in fraudulent purchases. Elsasser, however, believes she stole more than that amount.
When police searched Crisano’s home, they found evidence related to the Federal Navy theft, including photo IDs with the names of other women and Crisano’s photo. These women were members of the Federal Navy whose personal information had been compromised by Linton.
After learning that the former Navy Federal fraud investigator was cooperating with the police, she attempted to hire a hitman to kill him, her husband, and another police officer. The hitman she tried to hire turned out to be another undercover police detective.
For these crimes, Crisano, 41, was sentenced to 81 years in prison in 2019.
But it wasn’t until last March that she was sentenced to an additional four years in prison for her crimes involving the Navy Federal insider fraud case. Crisano, who was also a former police officer with the Prince George’s County Police in Maryland, was ordered to pay $7,061 in restitution to Navy Federal.
Linton pleaded guilty to his charge and was sentenced in 2018 to 10 years in prison with nine years and eight months suspended, according to Virginia court records.