Arrest Man In $3.6M Ripoff Of Comptroller

By RICHARD STEIER

A Brooklyn man stole more than $3 million from a bank account maintained by the City Comptroller's Office over the past 13 months before he was arrested April 5, according to the Manhattan District Attorney's Office.

ROBERT M. MORGENTHAU: An electronic heist.

It was unclear whether the man, 49-year-old Tracy Ball, had help from anyone on the Comptroller's staff, and a spokeswoman for DA Robert M. Morgenthau said a probe is continuing.

Bought Gems in Bulk

Beginning last March, Mr. Ball allegedly made 604 electronic fund transfers totaling $3.6 million from the Comptroller's account at JPMorgan Chase to Jewelry Television, a retailer that sells jewelry and gems on-line and via cable and satellite. According to the DA, he placed orders in bulk for diamond earrings, bracelets, necklaces and watches, siphoning some of the money to cover other expenses like his car insurance and phone bill. The retailer shipped most of the orders to Mr. Ball at two Brooklyn addresses, with smaller quantities sent to addresses in Greenwich Village and The Bronx.

More than 100 pieces of jewelry have been recovered.

"It's believed that he was probably reselling some of [the jewelry and gemstones] to pawnbrokers," Mr. Morgenthau said through the spokeswoman, Jennifer Kushner.

The alleged scam - which drew funds from an account used to pay Workers' Compensation claims - did not come to light until it was more than a year old. On March 27, Jewelry Television alerted the bank because of the unusual pattern of orders, with Mr. Ball buying a dozen or more of the same items. JPMorgan Chase then contacted the Comptroller's Office, which got the DA involved.

If convicted of the charge of grand larceny in the first degree, Mr. Ball faces up to 25 years in prison.

A spokeswoman for City Comptroller William C. Thompson Jr. cited the ongoing investigation in declining comment about whether steps had been taken to prevent future embezzlement using electronic transfers.