Articles Posted in Conversion

Financial Services firms sometimes breed their own cyber crooks and for reasons you might not suspect.  And while it is overseas based hackers that get the lion’s share of the publicity, it is internal company crooks who are responsible for much of the thievery.

Scott Capps is an interesting example as he allegedly stole $2.1 million. Recently, Capps told his tale to Philadelphia Inquirer reporter Joseph DiStefano before a month before the 48-year-old husband and father of one was scheduled to start a four-year federal prison sentence.  In the article, Capps said his path to the crime started out of a series of frustrations—that the source of the money he took was from dormant funds of various Vanguard clients.   After a period of time, those funds must be handed over to state governments as unclaimed property.

Capps acknowledged “”I stole $2.1 million, because I was [upset], because of what happened to my career.” As he explained: “Vanguard, as well as its many competitors, was not finding all the dormant accounts in its systems and didn’t seem to be trying really hard to improve. Checking the laws and questioning company lawyers, Capps became convinced that “we are all doing this wrong.”  The article went on to say he wanted to do it right by sending out a mass mailing or making mass calls to the account holders to tell them to respond and then their accounts wouldn’t be inactive, but Vanguard told him they didn’t want to do it.

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