How to trade options work37 comments
Defined benefit open market option
Michael Largent, 22, of Plumas Lake, California, allegedly exploited a loophole in a common procedure both companies follow when a customer links his brokerage account to a bank account for the first time. To verify that the account number and routing information is correct, the brokerages automatically send small "micro-deposits" of between two cents to one dollar to the account, and ask the customer to verify that they've received it.
Michael Largent allegedly used a script to open 58, online brokerage accounts in the names of cartoon characters, and other aliases. Hank Hill courtesy Fox Broadcasting Largent allegedly used an automated script to open 58, online brokerage accounts, linking each of them to a handful of online bank accounts, and accumulating thousands of dollars in micro-deposits. Largent's script allegedly used fake names, addresses and Social Security numbers for the brokerage accounts.
That last name is doubly-fake — it's the alias commonly used by the paranoid exterminator Dale Gribble on King of the Hill. Largent allegedly cashed out by channeling the money into pre-paid debit cards. A May 7 Secret Service search warrant affidavit.
When the bank asked Largent about the thousands of small transfers, he told them that he'd read Google's terms of service, and that it didn't prohibit multiple e-mail addresses and accounts. The Google caper is not charged in the indictment. According to the government, Largent was undone by the USA Patriot Act's requirement that financial firms verify the identity of their customers.
Largent is free on bail. He's charged in federal court in Sacramento with four counts each of computer fraud, wire fraud and mail fraud. He didn't return repeated phone calls Tuesday; Representatives of E-trade, Schwab. Sponsored Stories Powered By Outbrain. Wired Staff Wired Staff. Klint Finley Klint Finley. Issie Lapowsky Issie Lapowsky. Matt Gallagher Army of The Making of a Cyber Battalion.