Spares to the Vault?

For months, several Bank of America customers have complained about valuables missing from their safe-deposit boxes. And for months, the bank has denied that any thefts--which are extremely rare in the industry--have occurred. But two customers have found a measure of vindication.

Mara Gudis, an elderly woman who lives in the San Fernando Valley, claimed she discovered that $175,000 in cash was missing from her box at the Century City branch, which has since closed.

Gudis filed a lawsuit. When her case, originally with two others, first came to light last fall, BofA said flatly that the complaints have no merit.

Recently, however, BofA settled Gudis’ lawsuit. Neither side would disclose the amount Gudis received, saying the terms of the settlement were confidential. BofA spokesman Cary Walker confirmed the settlement this week, but he added, “They have yet to come up with any credible theory as to how these thefts have occurred.�

BofA, which this year began insuring contents of safe-deposit boxes, faces three other suits from customers at the Century City branch, including one scheduled to go to trial in mid-April. “No way I’m going to just walk away from this,� said Carole Cramer of Bel-Air, who claimed the loss of 15 pieces of jewelry worth more than $200,000.

John Stafford at the California Bankers Assn. says safe-deposit thefts are highly unusual because of the protections in place at banks. Two keys are required to open the boxes, and visitors must sign in. Vaults are sometimes monitored by video cameras or guards.

Even so, more cases have been reported in recent years, including one last fall in Chicago where at least six customers of a downtown bank found more than $500,000 worth of jewelry and gold coins missing. “Many safe-deposit robberies are apparently being perpetrated not by intruders, but by bank customers,� said the Bank Security Report, an industry newsletter. Thieves rent a box, the newsletter said, then, acting in pairs, gain access to the vault. One distracts the guard long enough to make a wax impression of the master key and return it. Later they duplicate it and on the next visit pilfer the boxes.

At BofA, the complaints have not been isolated to the former Century City branch.

Last fall, Joel Sher discovered that his Rolex watch was missing from his safe-deposit box at BofA’s Huntington Beach branch.

Sher said bank executives told him that his box was opened in error by a locksmith during an audit in which boxes that are not paid for may be opened. Sher said he filed a claim for more than $6,000 with the bank, only to be denied and, Sher says, given the runaround.

Last month, Sher took his case to small claims court in Westminster and prevailed. He won a judgment for $5,000--the maximum for small claims.

Sher said he was as much troubled by BofA’s reaction to his complaint as he was about the theft. “When I told them that the watch was missing, they all looked at me as if I was from another planet,� he said. BofA had no immediate comment on the case.

Tapping Hollywood

Hoping to cash in on the booming motion picture industry, Sanwa Bank has launched an entertainment department in new offices in Beverly Hills.

Heading the three-person department is Ken Whiting, who ran First Interstate’s entertainment department before that bank was taken over by Wells Fargo. Whiting hopes to build the department to 10 people and book $200 million in business. Sanwa will focus on financing small, independent films in the $3-million to $5-million range.

“We’re hoping to make some dents,� he said, noting that Chase Manhattan, Bank of America and City National Bank are among the leading lenders to the entertainment industry.

Don Lee can be reached via e-mail at [email protected] or by fax at (213) 237-7837.