A New York decide has dominated that Citibank is financially accountable for failing to cease an enormous fraud scheme that drained lots of of 1000’s of {dollars} from an aged Queens girl who was bodily unable to handle her personal affairs.
The determination orders the financial institution to pay practically $3.5 million after figuring out it missed apparent warning indicators and mishandled the case as soon as the theft got here to mild. In a Dec. 19 ruling, Queens Supreme Court Justice Bernice Siegal discovered that Citibank failed to adequately defend Leileth Faye Graham, an 80-year-old stroke survivor who has been legally blind and bed-bound since 2020.
The court docket ordered Citibank to pay treble damages beneath the Electronic Funds Transfer Actplus curiosity and penalties, after greater than $772,000 was fraudulently withdrawn from Graham’s accounts. The complete judgment approaches $3.5 million. The decide additionally sanctioned the financial institution $10,000 for concealing key proof for greater than 14 months regardless of court docket orders requiring its disclosure.
According to court docket filings, the theft concerned greater than 200 ATM withdrawals made in Massachusetts, a state Graham didn’t journey to, in addition to quite a few wire transfers. The withdrawals and transfers have been allegedly carried out by a member of the family whereas Graham was incapacitated in New York. Roughly $135,000 was taken via ATM exercise, with wire transfers accounting for a further $638,000.
Justice Siegal concluded that Citibank ignored clear crimson flags and failed to observe its personal safety procedures, which might have flagged the suspicious exercise and prevented additional losses. The ruling states the financial institution neither carried out a correct investigation nor returned the funds as soon as the unauthorized transactions have been reported.
Citibank has denied wrongdoing and appealed the choice, arguing it not possesses the lacking funds and elevating questions concerning the scope of the judgment.
Graham’s niece and caregiver, Ingrid Gayle, mentioned the drawn-out authorized course of has been painful for her aunt, who now depends upon Medicaid for care. She mentioned any recovered funds can be used to enhance Graham’s high quality of life, together with renovating her condo and securing specialised transportation.
“My hope is that something will come through, so that she gets to enjoy something out of it before she passes away,” Gayle mentioned.
Court-appointed guardian Abraham Mazloumi presently oversees Graham’s funds. Court information present the extent of Graham’s situation got here to mild after family members found unsafe residing circumstances in her dwelling, prompting an Adult Protective Services investigation.
Before her well being declined, Graham lived independently and labored for many years within the authorized subject, together with as a authorized secretary at Shearman & Sterling, a agency that represented Citibank for years. She immigrated to the United States from Jamaica within the Nineteen Seventies, earned levels from Manhattan College and Pace University, and was identified by members of the family as frugal and self-reliant.