MA Bank Of America VP Embezzled $3M: Feds

BOSTON, MA — A Massachusetts woman and former senior vice president at Bank of America on Thursday admitted to embezzling $2.7 million from her company to pay for things like "lavish" birthday parties and a $17,000 motorcycle, according to federal prosecutors. Palestine Ace, 45, of Rockland — who goes by Pam Ace — pleaded guilty to bank fraud and wire fraud in federal court in Boston. She and her husband, Jonathan, 46, admitted to running the scheme together.

Prosecutors said Ace authorized dozens of supposed donations from Bank of America to various nonprofits then accessed the money to pay for personal expenses. The Aces ran the scheme from 2010 to 2015 when Pam Ace was a senior vice president of Bank of America's Global Wealth & Investment Management Division.

"(Pam) Ace authorized 75 transactions, each under $50,000, to non-profit organizations in Boston and Atlanta," U.S. Attorney Andrew Lelling said in a statement. "Then, the couple, either directly or indirectly, informed the non-profit organizations that a substantial portion of the donated funds had to be returned in order to ensure that Bank of America would continue to fund the organization. The non-profit organizations either wrote a check to Jonathan Ace or a co-conspirator, or they returned funds to a Bank of America account, to which the couple had access."

Lelling continued, "On various occasions, Jonathan Ace pressured the recipients of the donated funds to return a higher percentage of the funds to him, by using intimidation and threats of public humiliation. Palestine and Jonathan Ace used a portion of the funds they embezzled from Bank of America to support their lifestyle and pay for personal expenses, including lavish birthday parties and the purchase of a $17,000 Kawasaki motorcycle."

Pam Ace pleaded guilty to conspiracy to commit bank fraud, five counts of wire fraud and 12 counts of Bank Fraud; Jonathan Ace pleaded guilty to conspiracy to commit bank fraud, engaging in unlawful monetary transaction and three counts of wire fraud. They are scheduled for sentencing in May.

Some of the charges carry maximum a prison term of up to 20 years.

Photo credit: Chuck Burton/Associated Press