According to Bloomberg News, JP Morgan Chase Bank N.A has been sued by a French maker Ray-Ban glasses unit. It claims that the bank failed to address the red flags related to transactions as cybercriminals successfully drained out $272 million from the New York bank account.
More on the fraudulent transactions
Essilor Manufacturing of Thailand Co said that J.P. Morgan was aware of the red flag transactions at the beginning of September 2019 and the highly suspicious fraudulent transaction patterns but failed to inform the company.
As far as the red flags are concerned, it included an escalation in the monthly volume of dollars from $15 million to more than $100 million. Also, money was being shifted to shell companies at the regional banks. These transactions usually took place in the so-called high-risk jurisdictions, said EMTC in the complaint filed on Monday in the Manhattan Federal court.
The EMTC stated that the fraudulent transfers were done in round dollar amounts without any cents in the complaint. This deviation from the earlier periods when the transaction related to round dollar transfers was not frequent.
EMTC operates in Thailand as a manufacturing plant for EssilorLuxuttica SA. J.P. Morgan Chase Bank is a unit of JP Morgan Chase & Co. No one responded to a request when asked to comment on the matter.
Bloomberg News reports that the EMTC said it had recovered all the amount, excluding $100 million from the stolen funds, by going through a burdensome and costly process. It is planning to seek compensatory damages that will be decided upon at trial.
The lawsuit is between Essilor International SAS v. J.P. Morgan Chase Bank, N.A., 22-cv-03361, U.S. District Court, Southern District, New York, and Manhattan.
