"Bank Manager Exploited Trust, Funneling Funds Through Fake Accounts"

A former bank manager of Cathay Bank branches in the Los Angeles area has been indicted on multiple charges of bank fraud, identity theft, and false financial record entries following an FBI investigation. Weixin “Tony” Chen, who managed locations in Arcadia and the City of Industry, is alleged to have orchestrated a scheme involving the unauthorized opening of checking accounts in the names of customers by forging their signatures. He reportedly informed loan applicants that their requests had been denied while secretly establishing fraudulent accounts and transferring funds into them to conceal the unauthorized activity [1].

According to the federal indictment, Chen accessed customers’ home equity lines of credit (HELOC) and deposit accounts, channeling the funds into accounts under his control. The indictment also alleges that some customers made cash payments believing they were reducing their debts, but the money was allegedly retained by Chen for personal use. Federal prosecutors have charged him with five counts of bank fraud, one count of aggravated identity theft, and eight counts of making false entries in financial records [2].

The investigation into Chen was conducted jointly by the FBI and the Federal Deposit Insurance Corporation Office of Inspector General. He was arrested at his home in Chino Hills and appeared in court on August 14, 2025. He was released after posting a $10,000 bond. If convicted, Chen could face up to 30 years in federal prison for each bank fraud charge, a mandatory two-year sentence for identity theft, and up to 40 years for each false entry count. The case remains under active investigation [2].

The charges against Chen come amid a broader landscape of increased scrutiny over financial fraud in banking and lending sectors. The U.S. Department of Justice has previously pursued similar cases involving misuse of federal relief programs, as seen in a separate case where a California man recently pleaded guilty to defrauding the Paycheck Protection Program and Economic Injury Disaster Loan programs of $15.9 million in federal funds [3]. While that case involved the misuse of pandemic relief funds rather than direct bank fraud, it highlights the ongoing focus by law enforcement on financial misconduct.

The Cathay Bank fraud case has raised concerns over internal controls and oversight in financial institutions, particularly in local branches where direct customer interactions are common. Investigators suggest that Chen’s ability to operate the scheme for an extended period indicates potential weaknesses in customer verification and transaction monitoring processes. While the full scope of the financial losses has not been publicly disclosed, the indictment suggests that the stolen funds could run into hundreds of thousands of dollars [1].

The outcome of Chen’s case could serve as a cautionary example for other financial professionals and institutions, emphasizing the importance of compliance and transparency in customer dealings. As federal agencies continue to emphasize the prosecution of financial fraud, the legal consequences for such actions are likely to remain severe.

Source: [1] Bank Manager Allegedly Opened Up Accounts in ... (https://dailyhodl.com/2025/08/24/bank-manager-allegedly-opened-up-accounts-in-customers-names-kept-and-stole-thousands-of-dollars-according-to-fbi-report/) [2] Bank manager opened accounts in customer names ... (https://ktla.com/news/local-news/bank-manager-opened-accounts-in-customer-names-pocketed-cash-payments-fbi/) [3] California Man Pleads Guilty for Role in $15.9M COVID-19 ... (https://www.justice.gov/opa/pr/california-man-pleads-guilty-role-159m-covid-19-fraud-scheme)