Former BofA exec linked to embezzlement

One of three charged

A former Bank of America executive and her husband are accused of embezzling more than $2.7 million from the company through fake donations to nonprofit organizations in Boston and Atlanta, federal authorities said.

Palestine Ace, 45, a former senior vice president of Bank of America’s Global Wealth & Investment Management Division, and her husband, Jonathan R. Ace, 46, were arrested and charged yesterday with one count of conspiracy to commit bank fraud and wire fraud. Brianna Alexis Forde, 35, was also arrested and charged in the scheme.

From October 2010 to April 2015, the trio executed an embezzlement and kickback scheme that involved donating money to nonprofits only to demand that some of the cash be returned, according to court documents. Prosecutors say the plan involved Palestine Ace authorizing 75 transactions — all under $50,000 — to nonprofits in Boston and Atlanta.

The trio gave “the false impression that the repayments were necessary to ensure additional funding” from Bank of America, according to authorities.

“At various times, (Jonathan R. Ace) pressured the recipients of the BOA funds to give him a higher percentage of the funds by using intimidation and threats of public humiliation,” the indictment states.

The nonprofits would then either write a check to Jonathan Ace or Forde, or they returned funds to a Bank of America account to which the defendants had access, according to prosecutors. The Boston nonprofits “focused on basketball and educational programs for Boston area youth,” according to the indictment

All told, the trio caused BOA to pay seven different Boston nonprofits approximately $1,038,000, federal authorities say. They caused the bank to transfer $1.72 million to four different Atlanta area nonprofits, the indictment reads.

“(Palestine) Ace was not authorized to make these payments and in fact did not have the authority to make charitable donations or sponsorships on behalf of BOA,” the indictment reads. “Ace attempted to conceal the fraud by instructing others within BOA to exclude the fraudulent transfers from regular accounting reports to her supervisor.”

The Ace couple would use the funds embezzled from Bank of America “to support their lifestyle and personal expenses, including lavish birthday parties” and the “purchase of a Kawasaki motorcycle,” prosecutors said.

The charges of wire fraud and bank fraud can lead to up to 20 years in prison. The charge of unlawful monetary transaction is punishable by up to 10 years in prison.