VOLUSIA COUNTY, Fla. – Authorities are investigating the theft of more than $3,000 from an organization that supports Volusia County military veterans and their families.
By the time members of the Veterans of Foreign Wars (VFW) Auxiliary Post 8093 in DeBary discovered the money had been fraudulently withdrawn from their business savings account, the group had missed a two-day deadline to get the electronic transaction reversed.
“We don’t expect that kind of thing to happen when everything you do is to help somebody else,” said VFW Auxiliary president Ann Batson.
Wells Fargo, the VFW Auxiliary’s bank, originally indicated it was unable to reimburse the organization for the fraudulent transaction.
Days after News 6 began asking questions about the matter, the VFW Auxiliary received a cashier’s check from Wells Fargo in the full amount of the missing funds.
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A Wells Fargo spokesperson said the reimbursement originated from Capital One, the bank reportedly used by the thief.
‘I am profoundly grateful for (News 6) intervening for us and getting our money back," Batson said. “We could not have done this without your help. Thank you from the bottom of my heart.”
The VFW Auxiliary supports a wide variety of programs aimed at helping veterans by raising money through events like USO-style shows, banquets and bingo nights.
“My sister was Air Force. My brother was Navy. My husband was Army,” said Batson. “We work hard, and all of the money goes back to the veterans in one way or another.”
While reviewing the VFW Auxiliary’s monthly bank statement from Wells Fargo in October, Batson said the organization’s treasurer discovered an unauthorized transaction.
Bank records show $3,118 was withdrawn from their savings account through a “business-to-business ACH debit” tied to a Capital One account in the name of “Crystle Huggins.”
“We don’t know who she is. She’s not authorized on the account,” Batson said.
By the time the VFW Auxiliary contacted Wells Fargo to report the fraud, it was reportedly too late for the bank to reverse the transaction.
While consumers with personal bank accounts generally have up to 60 days to dispute transactions, owners of business bank accounts must report fraudulent activity promptly.
“We are not able to reimburse you because too much time passed before you notified us,” Wells Fargo wrote in a letter to the veterans group.
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Wells Fargo cited a requirement established by Nacha, the National Automated Clearing House Association, which administers bank-to-bank electronic transfers over the ACH network.
“(We) need to return any unauthorized (Cash Concentration or Disbursement) payments to the originating back no later than the second business day after the transaction occurred,” the letter from Wells Fargo stated.
A Nacha spokesperson confirmed that its rules permit a bank to reject an unauthorized ACH transaction to a business account, typically for up to two days.
“Although the incidence of unauthorized ACH payments is very low, Nacha recommends that businesses monitor account activity at least daily and use bank-offered services, such as debit blocks and positive pay services, to help ensure that only authorized withdrawals post to their accounts,” the Nacha spokesperson told News 6.
VFW Auxiliary representatives said they tried to dispute the transaction with Capital One, the bank reportedly used by the thief to make the unauthorized withdrawal, but were not immediately successful.
A Capital One spokesperson did not respond to an inquiry from News 6.
After this story published, a Wells Fargo spokesperson told News 6 that it made a “late recovery” from Capital One for $3,118.
Since the VFW Auxiliary closed its Wells Fargo account after the reported theft, Wells Fargo sent the funds to the veterans organization via a cashier’s check.
Prior to closing the savings account, Batson said at least three other fraudulent transactions were attempted but had been caught in time.
“I’d just like to get my hands on whoever’s doing it,” Batson said with a giggle. “Shake them up and choke the snot out of them.”
The Volusia County Sheriff’s Office is actively investigating the theft, an agency spokesperson confirmed.