Man Arraigned for Setting Up 58,000 Brokerage Accounts

The FBI and the Secret Service Wednesday arraigned a 22-year-old man on charges that he opened more than 58,000 fraudulent accounts on E*Trade, Charles Schwab, and other online brokerage services.

According to the Department of Justice, Michael Largent collected some $50,000 by stealing the "micro-deposits" that are used to verify information in new brokerage accounts.

Larget opened the accounts using false names, addresses, driver's license numbers, and Social Security numbers -- "including the names of known cartoon and comic book characters," the DOJ said. When the deposits took place, Largent transferred the tiny sums into his own bank accounts and onto pre-paid debit cards.

Largent faces a maximum of 25 years in prison for mail fraud, wire fraud, and computer fraud.

— Tim Wilson, Site Editor, Dark Reading