An Object Lesson

[coqui33]

An Object Lesson

I had been happily trading on localbitcoins.com for a few weeks when I was ripped off by someone outside of the localbitcoins website. The theft cost me $1500 in cash, permanent lock-out from six family Chase accounts, and perhaps an additonal $6000 (unresolved). Here is what happened.

Between June 3 and June 6, 2013 I conducted about $6,000 worth of smooth online bitcoin trades through localbitcoins.com.

Then I received an email from someone claiming to be Wendelyn K. Brooks-Stuart, 9526 Bayou Lake Lane, Houston, TX 77040, saying that she saw my localbitcoins ad and wanted to buy 12 BTC. I agreed. Without going through the localbitcoins procedure, she directly sent me $1500 via Chase QuickPay. Without going through the localbitcoins procedure, I directly sent her the 12 BTC. She then called Chase, claiming that I had defrauded her. Chase clawed back the $1500 from my account and refunded the money to her. She also kept the 12 BTC. That was the good news.

Based on that single complaint, and without any investigation or warning, Chase then permanently locked me out of: my personal account, our company business account, and two credit card accounts. They also locked my wife out of her personal account and one credit card account, even  though her name was not on any of my accounts, and my name was not on any of her accounts. They refused to tell me why we were locked out. That was the medium news.

Here is the bad news. The following day, I received an automated-alert email that someone had siphoned $6000 from my personal account. The someone was J.P. Morgan Chase Bank itself. They had decided (again without warning) that, since I was accused of fraud for the $1500 transaction (where I was ripped off), that all of the deposits to my account from 5 June on were bogus. So they confiscated all $6000 off them and began sending them all back to wherever they had come from.

My wife and I remain permanently locked out of two personal accounts, a business account, and three credit cards. Chase will not consider relenting on this. On the other hand, Chase has opened the possibility that they may perhaps consider giving us back the $6000 of unrelated deposits  that they confiscated.

The moral of the story: (1) Don't trade BTC/USD outside of the localbitcoins procedures. (2) Don't put any more money into Chase than you are willing to lose without warnng.

Frank W  Sweet (coqui33)
30 Medford Dr
Palm Coast FL 32137
386-316-9769
fwsweet@backintyme.com

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[PrintMule]

and what exact proof of your defrauding did that person present to this Chase?

[ruggedman_dan]

I hate to hear stuff like this. I hope you get your funds back in a timely fashion.

I think the real moral of the story is stay away from Chase Quickpay.

[Kruniac]

and what exact proof of your defrauding did that person present to this Chase?

This.

Also, what did this person say to make Chase believe that you had been "defrauded"?


I don't mean any offense, but this sounds exactly like what would happen if a scammer got their accounts locked. This is an emergency shut down, not a "let's be unreasonable" move.

[PrintMule]

and what exact proof of your defrauding did that person present to this Chase?

This.

Also, what did this person say to make Chase believe that you had been "defrauded"?


I don't mean any offense, but this sounds exactly like what would happen if a scammer got their accounts locked. This is an emergency shut down, not a "let's be unreasonable" move.

My inquiry was about "what did this person say to make Chase believe that you had been "defrauded"?"

so don't you "This" me, mr. very trusted person.

[runam0k]

Fishing for tips for your next scam, Kruniac?

OP - this is clearly absurd, particularly locking your wife out of her accounts.  Complain, loudly.  And seek immediate legal advice.

[Tomatocage]

Keep an eye on Currency Exchange for more offers to buy BTC via Chase QuickPay

[Kruniac]

and what exact proof of your defrauding did that person present to this Chase?

This.

Also, what did this person say to make Chase believe that you had been "defrauded"?


I don't mean any offense, but this sounds exactly like what would happen if a scammer got their accounts locked. This is an emergency shut down, not a "let's be unreasonable" move.

My inquiry was about "what did this person say to make Chase believe that you had been "defrauded"?"

so don't you "This" me, mr. very trusted person.

"This" meaning I agree with the inquiry, and I also want to know the answer.

Jesus. Little rude, aren't we?

Fishing for tips for your next scam, Kruniac?

I wouldn't ever try to shill the bank system - that's how you do time.

I'm genuinely interested in what made Chase do something like this - I was considering opening a tertiary bank account using Chase to instantly receive QuickPay (instead of the 1-2 day transfer time), and now I'm not so sure.

[coqui33]

and what exact proof of your defrauding did that person present to this Chase?

I have no clue. Chase refuses to discuss it. Chase would not even tell me why they had taken the actions. The local branch manager (a friend) figured it out by process of elimination. (Mrs. Brooks-Stuart's payments were the only ones that vanished from the account statement.) The district manager then confirmed her accusation of me but would say no more.

[Deprived]

The most likely explanation is that the account from which you (the OP) were sent funds was compromised - and the person you dealt with wasn't the legitimate owner of the account.

The bank is acting on the assumption that you were a partner of whoever gained control of that account - and hence a part of the scam.  The removal of the other $6k (and locking of all related accounts) would then be a precautionary measure in case other payments were also part of the scamming that the bank believes you're in on.

I'd expect the $6k to be returned fairly promptly - once the bank is satisfied the sending accounts were under the control of their rightful owners when the transactions occurred.  The $1.5k I'd be less inclined to expect return of - I'm not from the US and have no idea what your banks' policy is on payments made by 'hacked' accounts to innocent parties.  I'd recommend getting legal advice - not so much to get back your cash (the $6k is going to come back - the $1.5k probably not) as to make sure your credit rating doesn't get totally screwed by entries on it relating to the incident.

[dwdoc]

Ok sleuths. Lets get on this. Looks like she is in her late 50's. Is it possible that her kid or grandkid made the purchase and she reversed it? Did someone else steal her identity? Did OP try calling her? Has she responded to emails?

http://www.spokeo.com/Bayou+Lake+Ln+Houston+TX+addresses#557222171//229265447

[worldinacoin]

I guess no currency exchange policies exist there .  Also perhaps they don't even know what is Bitcoin

[MPOE-PR]

An Object Lesson

I had been happily trading on localbitcoins.com for a few weeks when I was ripped off by someone outside of the localbitcoins website. The theft cost me $1500 in cash, permanent lock-out from six family Chase accounts, and perhaps an additonal $6000 (unresolved). Here is what happened.

Between June 3 and June 6, 2013 I conducted about $6,000 worth of smooth online bitcoin trades through localbitcoins.com.

Then I received an email from someone claiming to be Wendelyn K. Brooks-Stuart, 9526 Bayou Lake Lane, Houston, TX 77040, saying that she saw my localbitcoins ad and wanted to buy 12 BTC. I agreed. Without going through the localbitcoins procedure, she directly sent me $1500 via Chase QuickPay. Without going through the localbitcoins procedure, I directly sent her the 12 BTC. She then called Chase, claiming that I had defrauded her. Chase clawed back the $1500 from my account and refunded the money to her. She also kept the 12 BTC. That was the good news.

Based on that single complaint, and without any investigation or warning, Chase then permanently locked me out of: my personal account, our company business account, and two credit card accounts. They also locked my wife out of her personal account and one credit card account, even  though her name was not on any of my accounts, and my name was not on any of her accounts. They refused to tell me why we were locked out. That was the medium news.

Here is the bad news. The following day, I received an automated-alert email that someone had siphoned $6000 from my personal account. The someone was J.P. Morgan Chase Bank itself. They had decided (again without warning) that, since I was accused of fraud for the $1500 transaction (where I was ripped off), that all of the deposits to my account from 5 June on were bogus. So they confiscated all $6000 off them and began sending them all back to wherever they had come from.

My wife and I remain permanently locked out of two personal accounts, a business account, and three credit cards. Chase will not consider relenting on this. On the other hand, Chase has opened the possibility that they may perhaps consider giving us back the $6000 of unrelated deposits  that they confiscated.

The moral of the story: (1) Don't trade BTC/USD outside of the localbitcoins procedures. (2) Don't put any more money into Chase than you are willing to lose without warnng.

Frank W  Sweet (coqui33)
30 Medford Dr
Palm Coast FL 32137
386-316-9769
fwsweet@backintyme.com

This sounds like a lesson indeed.

Not sure what it is tho', don't live in United Shitland?

[Kruniac]

Ok sleuths. Lets get on this. Looks like she is in her late 50's. Is it possible that her kid or grandkid made the purchase and she reversed it? Did someone else steal her identity? Did OP try calling her? Has she responded to emails?

http://www.spokeo.com/Bayou+Lake+Ln+Houston+TX+addresses#557222171//229265447

Someone pulling a job is going to use this type of identity to run that job. This doesn't sound like a simple accident of her dog hit Enter on the keyboard and she reversed it.

Anyway. I hope you get it worked out, OP. Thanks for the heads up regarding Chase's policies.