Abacus' other branches, in Queens, Brooklyn and Edison, N.J., appeared to be operating as usual. By Wednesday, jittery patrons at the bank's Philadelphia branch had withdrawn at least $700,000 by noon, temporarily emptying the branch's vaults. Carol John Mee Lim was charged Friday with embezzlement, but was still being sought for arrest.Ībacus is FDIC-insured and regulators said it was in sound financial shape.īut as word of the alleged embezzlement spread throughout the tight-knit community, news mutated into rumor, creating a heightened sense of panic about the bank's solvency. Then, last week, a Chinese-language newspaper and radio station reported that a former Abacus branch manager allegedly embezzled at least $1 million, triggering a run on the bank. The prolonged economic woes increased financial strains on the many people who care for their extended families in the United States and mainland China.Īnxieties about the SARS virus have exacerbated the economic difficulties, reducing the number of visitors to Chinatown's restaurants and shops. Just blocks from the World Trade Center site, Chinatown has yet to recover the 8,000 jobs lost when streets were closed in the aftermath of the terrorist attacks. "People said it looked like a scene from the Depression era - and that's what we're experiencing in Chinatown." "But the community is still reeling from the effects of 9/11 and then there's SARS and so many businesses have not been able to recover," Lee said. If embezzlement were reported at a large mainstream bank, customers would say, "'Oh, another case of financial impropriety,"' said Cynthia Lee, an expert on the politics of Chinatown and deputy director of programs at the Museum of Chinese in the Americas.
11, 2001, terrorist attacks, the economic downturn and the SARS scare, experts said. The tempest - which most observers considered an extraordinary overreaction to news of a bank employee's alleged embezzlement - reflected a general sense of precariousness still felt by ethnic Chinese following the Sept.
She was among thousands of ethnic Chinese depositors who, despite repeated bank and government reassurances, withdrew as much as $30 million from the bank last week. NEW YORK - When Cathy Wu heard "something bad" happened at Abacus Federal Savings Bank, she rushed to Chinatown to withdraw her family's savings. Some 20 community leaders deposited a substantial amount of money, Sung said."Ĭhinatown Banking Scandal Reflects Community Fears The news story below reports that "as much as $30 million was withdrawn from the bank last week" and that "community leaders, other banks and friends of Thomas Sung came out in support of Abacus.
insures bank deposits of up to $100,000 per account. There were no lines outside the bank's Chinatown branch Friday afternoon.įederal regulators have said the bank's accounts are safe. The bank, with other branches in Brooklyn, Queens, Philadelphia and Edison, N.J., caters to Chinese, including many recent immigrants.Įfforts by the bank to reassure customers that their accounts were insured and safe appeared to be working. "We're looking to arrest her," said Jim Margolin, an FBI spokesman.Ĭrowds of customers began gathering outside the bank Tuesday after a Chinese language newspaper and radio station reported Lim had embezzled as much as $1 million. NEW YORK - A fired bank official was charged Friday with embezzling $1 million, three days after hundreds of people rushed to the Chinatown branch to get their money after rumors of wrongdoing.Ĭarol John Mee Lim, a former branch manager and officer of Abacus Federal Savings Bank, was charged in a criminal complaint unsealed in U.S. Ex-Bank Manager Charged With Embezzlement
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