Outline:
A judge in New York has decided thatCitibankis financially accountable for not preventing a large-scale fraud operation that siphoned hundreds of thousands of dollars from an elderly woman in Queens who was physically incapable of handling her own financial matters.
The court mandated that the bank pay almost $3.5 million following an assessment that it ignored clear indicators and improperly managed the case when the theft was discovered. In a decision issued on December 19, Queens Supreme Court Judge Bernice Siegal concluded that Citibank did not sufficiently safeguard Leileth Faye Graham, an 80-year-old woman who has been legally blind and confined to her bed since 2020.
The court mandated Citibank to cover triple damages underthe Electronic Funds Transfer Agreement, plus interest and fees, after over $772,000 was illegally taken from Graham’s accounts. The total ruling is nearing $3.5 million. The judge also fined the bank $10,000 for hiding important evidence for over 14 months despite court orders to release it.
As per court documents, the theft included over 200 ATM transactions in Massachusetts, a location Graham never visited, along with multiple wire transfers. The transactions were reportedly conducted by a relative while Graham was unable to act in New York. Approximately $135,000 was withdrawn via ATMs, with an extra $638,000 taken through wire transfers.
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Justice Siegal determined that Citibank overlooked obvious warning signs and did not adhere to its own security protocols, which might have identified the unusual activity and stopped additional losses. The decision mentions that the bank did not carry out a thorough investigation nor return the money after the unauthorized transactions were reported.
Citibank has rejected any admission of fault and is appealing the ruling, stating that it no longer holds the missing money and questioning the extent of the court’s decision.
Graham’s niece and caretaker, Ingrid Gayle, stated that the prolonged legal procedure has been difficult for her aunt, who now relies onMedicaidfor care. She mentioned that any recovered money would be utilized to enhance Graham’s quality of life, such as remodeling her apartment and obtaining specialized transportation.
“I hope that something will emerge, allowing her to experience some joy from it before she passes away,” Gayle said.
A court-appointed guardian, Abraham Mazloumi, is currently managing Graham’s financial affairs. According to court documents, the severity of Graham’s situation became apparent when family members found her living in hazardous conditions, leading to an investigation by Adult Protective Services.
Prior to her health deteriorating, Graham resided on her own and spent many years working in the legal sector, such as serving as a legal secretary at Shearman & Sterling, a company that had long been associated with Citibank. She moved to the United States from Jamaica in the 1970s, obtained qualifications from Manhattan College and Pace University, and was recognized by her relatives as being economical and independent.
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