Bank Insider Drains $12,500 From Deceased Customer’s Account in Series of Unauthorized Transactions: Federal Reserve

The Federal Reserve says a US bank employee took advantage of a customer’s death and stole more than $10,000.

According to a new memo issued by the Fed’s Board of Governors, Klaus Koberstein – a senior sales associate at the East Cambridge Savings Bank in Cambridge, Massachusetts – drained $12,500 from a deceased customer’s bank account for his own personal benefit.

Authorities say that between October 2025 until May 2023, Koberstein siphoned funds from the account in a series of unauthorized transactions.

The Fed has not specified who the victim was or exactly how the banker executed the scheme.

“Koberstein’s conduct constituted violations of law or regulation, unsafe or unsound banking practices, or breaches of fiduciary duty, and involved his personal dishonesty and his willful and continuing disregard for the safety and soundness of the Bank.”

Koberstein has made full restitution to the account.

He is now barred from “participating in any manner in the conduct of the affairs of any institution or agency… including, but not limited to, any insured depository institution or any holding company of an insured depository institution, or any subsidiary of such holding company, or any foreign bank or company.”

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