Detroit man gambles away $1.5 million accidentally given by ATM

Yahoo News ^ | June 19,2012 | Eric Pfeiffer

[Michael.SF.]

Ronald Page seemingly had it made when Bank of America unintentionally changed his account status, allowing the 55-year-old man to make unlimited ATM cash overdraft withdrawals.
But ABC News reports that Page, who in reality had only $300 in his checking account, used the accidental loophole to withdraw more than $1.5 million—losing it all on gambling.
And even worse for Page, the U.S. Attorney's Office in Detroit says he is now facing 15 months in prison after pleading guilty to charges of theft of bank funds, $1,543,104 in total between December 1, 2008 and May 31, 2009.
"In this case, the bank's glitch allowed the defendant to lose a significant amount of money that was not even his in the first place," reads the U.S. Attorney's sentencing memorandum, obtained by ABC. "The fact that defendant acted on an impulse does not minimize the seriousness of his conduct and the need for a custodial sentence."
The day the Bank of America glitch went into effect, Page reportedly withdrew $312,000 from ATMs at the Greektown Casino in Detroit and an additional $51,727 from the MGM Grand Casino. Bank of America placed a hold on his account 17 days later, but he had already withdrawn $1.5 million by that point.

[Vince Ferrer]

...used the accidental loophole to withdraw more than $1.5 million—losing it all on gambling

That would be my cover story too.

Meanwhile, if you were an ATM company in the software testing department, what would be the absolute first test you would write?

[elkfersupper]

That's exactly what I would have said.

"Find it".

[Graybeard58]

Had the same thought. ATM's around here only have $20 bills. Maybe Vegas casinos have higher denominations?

I stayed at Harrah's St. Louis a couple of weeks ago (did not gamble) used their ATM for $300 withdrawal and it gave me three one hundred dollar bills.

[PLMerite]

“15 months for $1.5M? Where do I sign up?”

Yeah, that’s a sweet deal. I’d have bought Krugerrands, buried them, and just *said* I gambled it all away.

[G Larry]

100,000 per month
~3334 per day
11 $300 transactions per day.
Multiple ATMs

Now...to make 11 trips to the ATM each day....
You gotta be drunk, stupid to gamble it all away that fast.

[cynwoody]

Oddly enough, B of A features another, younger Ronald Page as a student leader in their Neighborhood Excellence Intiative®.

[TheCPA]

The article does not discuss the income tax effects. The money that he illegally got from the ATM is included in his gross income under the claim of right doctrine. The net gambling losses are not deductible under Section 165. If he did not report the income on his return, he is looking at a 20 percent negligence penalty and six-year statute of limitations or a 75-percent civil fraud penalty and no statute of limitations.

[Michael.SF.]

And almost every other retired NBA player

[23 Everest]

Yeah but this doofus has nothing to show for it.

[School of Rational Thought]

He probably figured it was “Obama’s stash”.

[Krankor]

Most ATMs have a “Would you prefer a Million Dollar Bill” button for large withdrawers. I’ve used it several times myself.

[FoxPro]

I believe there is a daily limit on ATM withdrawals.

If there is, this story is impossible.

[Joe Bfstplk]

He found the only machine in the casino that paid 0ff. I'll bet they would renege on any other jackpot that was hit.

[Cowgirl of Justice]

Heck, I took my MIL to cash a check at her bank’s drive thru and when I counted the money, it was $5 over. We got back in line and gave it back. The teller actually argued that she had given us the right amount of money. Ever since then, she is borderline nasty when we go through the drive thru. I am guessing other employees heard us giving her the money back and maybe she is embarrassed? But she borderline refused to take the money and we had to drive off, leaving the $5 bill in the drawer. (The $5 was in between $20 bills and MIL didn’t even get any other fives.)

I always ask for the cash to be put in an envelope and she insists on putting it ON TOP of the envelope. Grrrrr....

[JCBreckenridge]

Cash deposited = cash credited?

“deposit 10 dollars”
“screen shows 20 dollars”
“withdraw 20 dollars”

[mamelukesabre]

They don’t let you gamble that much at a casino anymore without keeping track of you. There is video. There is the players club card you swipe everytime you cash out.

[Kenny500c]

Not condoning what he did but it does not seem like a crime, the bank allowed him to overdraw, a loan, which he did not pay back.

No different that people who took out large mortgages or HELOCs and did not pay them back, imho.

[SampleMan]

$1.5 million in cash and he gets 15 months? Where do I get that deal?

Gambled it away? Yea right.

[GreenAccord]

It seems to me you should be able to recover the cash from the casino if you can prove the guy was gambling with stolen cash.

Agreed. Couldn't the authorities claim the Casino(s) were guilty of receiving stolen property?

[Conservative Vermont Vet]

Ignoring the moral, legal, and tax implications for the moment...what are the physical *mechanics* involved of pulling $1.5 Million out of ATM’s?

Great minds and all that rot; was thinking the same thing.

Someone else can chime in if they want but my ATM has a $200 PER DAY limit.

Now he may have used his debit card in machines in casino(s) but can't imagine how he could have "withdrawn" that much cash in 17 days?