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Western Beaver Sues ESB Bank

Posted on July 14, 2009 by Dissent

Western Beaver School District has sued Ellwood City-based ESB Bank, saying the bank allowed someone to siphon more than $700,000 from two accounts while school administrators were off during the Christmas break in December and January.

The district says it’s still missing nearly $450,000.

According to the suit filed in Beaver County Court, someone infected Western Beaver’s computer system with a virus, which deceived the bank’s computer system into thinking that Superintendent Robert Postupac requested 74 electronic fund transfers totaling $704,610.35. Postupac was unaware of the transfers, the suit said.

Money was deposited from Dec. 29 through Jan. 5 into the bank accounts of 42 separate individuals from as far away as California and Puerto Rico. The suit did not identify the people who received the money, but noted that none of them had had any connection to Western Beaver.

Read more on iStockAnalyst.com.

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