Yue Cao, 36, was sentenced to 10 years in federal prison in Cleveland for defrauding elderly bank customers. The sentence includes eight years for 10 counts of bank fraud and one count of money laundering, plus two additional years for four counts of identity theft.
Cao worked at KeyBank from 2015 to 2022 as a quant analytics manager, where his role was to build models designed to prevent financial crimes. He exploited this position of trust to access customer personal information and execute his fraud scheme.
The scheme involved creating fake email addresses through offshore services, enrolling more than 100 victims in online banking without their knowledge, and transferring their funds into accounts under his control. The victims, ranging in age from 90 to 103, were located in Ohio, New York, Pennsylvania, Connecticut, and Washington.
Prosecutors stated that Cao specifically targeted elderly customers, believing they were unlikely to report the theft. The scheme was discovered after suspicious transfers were flagged at Charles Schwab, where Cao later worked.
U.S. District Court Judge Philip Calabrese noted that Cao "used his position of trust within financial institutions to gain access to personal information." Assistant U.S. Attorney Edward Brydle characterized the fraud as "a slow, calculated process."
The sentencing covered approximately $1 million in losses, though prosecutors had cited roughly $2 million in damages during trial. Cao is a Chinese national and legal permanent resident who is expected to face deportation following completion of his sentence.
