FISHY BUSINESS
Fed probe of internet bank helped by tank man
Afederal probe into possible money laundering by a fastgrowing online bank got a big assist from an unlikely source: a greedy $10-an-hour parttime aquarium cleaner, court papers reveal.
Michael Procopio, 42, the husband of the bank’s former marketing boss, pocketed hundreds of thousands of dollars in bogus consulting fees arranged by his wife.
Kristi Procopio, 43, told her superiors at the Bank of the Internet, or BofI, that her hubby was a consultant needed to complete marketing work.
In fact, Michael is a stay-athome dad and earned about $200 a week for Fishy Business, a now-defunct aquarium store, court papers show.
The couple set up a sham consulting shop and together siphoned $500,000 from BofI. They used the cash to finance a luxurious lifestyle that included vacations, spa services and expensive gifts for friends, the San Diego District Attorney said in court papers.
The two also used the cash for trips to Costco, the DA said.
Michael and Kristi were busted last year on embezzlement charges. The couple, who have two young kids, pleaded guilty in January to 20 counts of forgery and other charges — and were sentenced on March 10 to four years in prison and ordered to repay $525,002. The sentence, however, was stayed.
Meanwhile, Kristi is telling authorities — including the San Diego US Attorney, the Securities and Exchange Commission and the FDIC — what she knows about alleged lax accounting and possible money laundering at BofI, court papers show.
The Post reported exclusively on March 30 that the feds were conducting a probe of the bank. Court papers revealed for the first time the details of the role the couple played in the probe.
Despite public records discussing the federal probe, BofI executives told The Post they were “completely unaware” of any investigations.
They have denied any wrongdoing. Neither BofI nor any executive has been charged with a crime. There is no guarantee the probe will result in any action.
Procopio joined BofI in 2010, rising to become the chief marketing officer. She was fired in 2013, court papers show.
Kristi had been a fixture of the local business community, winning the San Diego Business Journal’s 2012 Marketer of the Year award.
“Her intention was to build her experience and credentials to be a bank CEO by age 45,” Stacey Nelson Smith, a pal and former colleague, wrote in a letter to Judge Robert F. O’Neill on Procopio’s behalf.
The scheme was able to go on for so long because the bank had “a poor internal auditing system,” the DA’s office said.
Justice, the SEC, and Treasury have previously declined to comment on any investigation. The FDIC didn’t immediately respond to an e-mail seeking comment on its investigation, which hasn’t previously been reported.
The Procopios’ lawyer declined to comment.
Eshel Bar-Adon, BofI’s chief legal officer, said, “Ms. Procopio has pursued a vendetta against the bank, and has made numerous false allegations in a class action lawsuit and elsewhere.
“She is lying again now,” BarAdon said in a statement to The Post. “No agency has taken legal or regulatory action as a result of her false allegations, and we do not expect any action will be taken.”