A new kind of home banking…


A man in Washington state was busted for running a bank, with $28 million in deposits, out of his house:

A man operated a “warehouse bank” out of his suburban home, taking at least $28 million from people around the country who wanted a discrete [sic — I assume they mean discreet –MH] bank account, according to court documents.

An IRS investigator said Robert Arant had hundreds of customers, many of whom apparently used his bank, Olympic Business Systems LLC, to conceal assets for the purpose of evading taxes.

On his now-defunct Web site, Arant advertised his services to those “who would rather not deal directly with the banking system,” court records said.

Um, wow. Wesabe tip: don’t do this! Okay, you knew that. Tax evasions posing as shelters are incredibly dangerous for consumers. Remember the number one heuristic for evaluating offers like this: if it sounds too good to be true, it probably is. Don’t deposit your funds with an institution unless you’re sure they’re legitimate — for instance, you can identify a legitimate U.S. bank by searching for them on the FDIC web site.

5 Responses to “A new kind of home banking…”

  1. Joe Says:

    Weird, you act like he was doing something wrong– he was helping people avoid a criminal organization that wanted to steal their money.

    Its ironic that you advocate people check with this very same criminal organization to be sure they bank with “legitimate” entities.

    Your assumption that he was being fraudulent is apparently false. In fact, he was apparently more responsible than other banks as he did not engage in fractional reserve banking.

    But whats continually alarming to me is how twsited your perspective here is– your mind has been twisted to the point that good is evil and evil good. This is the power of government… they make their victims think that being prey is somehow morally superior to those who try to avoid being victims.

  2. Marc Hedlund Says:

    Hey, Joe,

    Thanks for the comment. Sounds like we have very different views. While we’re all about saving people money, we always advise people to do so within the bounds of the law. Tax evasion is illegal, and also carries a very high risk of significant financial penalties.

    Regardless, thanks for your response.

  3. Ron Shevlin Says:

    ok, so maybe I’M the one missing something here, Marc, but my Sarcastic-O-Meter was solidly in the red as I read Joe’s comment.

    If I am wrong, then, well … yes, thanks for the response, Joe. ~x(

  4. Carl Williams Says:

    We recently reviewed and interviewed Wesabe at our company blog. You can read what we have to say at: http://www.odinjobs.com/blogs/page/thatsinteresting?entry=wesabe_knows_where_your_money

  5. Dan Says:

    Hi: How does someone running a bank from home get that much in deposits? I find the story a bit hard to believe. Can you please post a link to it?
    Thank you!

Comments are closed.

%d bloggers like this: