U. won't lose money in scam

Despite being victimized by what federal authorities call the largest counterfeit operation ever, Penn won't lose a dime. University Treasurer Scott Lederman said yesterday that officials have identified 12 or 13 false checks written in the University's name, totaling about $75,000. However, Mellon Bank will be picking up the tab, since banks routinely reimburse customers who are defrauded. "We're pretty sure we're not going to lose anything in something like this," Lederman said. Last week, the Federal Bureau of Investigation arrested 38 people on charges of racketeering, bank fraud and money laundering. The suspects stand accused of obtaining thousands of fake checks -- which drew from the accounts of Penn and several other major area businesses and institutions -- and then writing them to themselves. All told, authorities said, members of the ring wrote themselves between $100 million and $1 billion in fraudulent checks. The actual losses amount to about $6 million, with banks having to foot the bill. The ring, allegedly led by 38-year-old Reginald Greene of the city's Overbrook Park section, obtained microfiche copies of checks and then "fraudulently represent[ed]" themselves to printing companies to order more checks, federal authorities said. In at least one situation, authorities said, a member of the group stole checks from the company in which he worked and gave them to Greene. Other area institutions the group allegedly victimized include the Philadelphia 76ers, WPVI-TV, U.S. Healthcare and PECO Energy Co. Earlier this week, prosecutors said most of the suspects in the ring had already been arrested. Bail hearings are being conducted this week and will continue through next week.