A federal grand jury has indicted Nathan Wu-Falkenborg on 15 counts of bank fraud and aggravated identity theft related to the alleged theft of funds from prepaid debit cards. Wu-Falkenborg appeared in federal district court following the unsealing of the indictment.
The indictment, filed on June 4, 2025, accuses Wu-Falkenborg, a 49-year-old resident of Alameda, of exploiting his position in fraud prevention at a company managing a prepaid debit card program known as Direct Express. This program enables recipients of federal benefits to access their funds via prepaid debit card accounts. Between September 2021 and March 2022, Wu-Falkenborg allegedly used confidential account information to activate and utilize numerous Direct Express accounts that were funded but inactive. The indictment claims he fraudulently obtained approximately $800,000 through several hundred ATM withdrawals in the Bay Area and online transactions.
Additionally, Wu-Falkenborg is accused of unauthorized use of a Direct Express customer’s identity to open various accounts for executing the scheme and unlawfully using debit cards linked to two victim customers.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani announced the charges against Wu-Falkenborg.
Wu-Falkenborg was released on bond pending his next court appearance scheduled for July 9, 2025, before U.S. District Judge Charles R. Breyer.
He faces charges including 12 counts of bank fraud under 18 U.S.C. § 1344(1), (2) and three counts of aggravated identity theft under 18 U.S.C. § 1028A(a)(1). An indictment alleges crimes have been committed; defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Wu-Falkenborg could face up to 30 years in prison and a $1 million fine per bank fraud charge, with an additional mandatory minimum sentence of two years in prison and a $250,000 fine per aggravated identity theft charge. Sentencing would be determined by the court considering U.S. Sentencing Guidelines and federal statutes.
Assistant U.S. Attorneys Jared Buszin and Charles Bisesto are prosecuting with assistance from Tina Rosenbaum following an FBI investigation.
