Citibank ordered $3.5M payment to NYC stroke victim for missing fraudulent withdrawals involving Face2Face Africa.
A Landmark Ruling for Consumer Protection: Citibank Ordered to Pay $3.5M to NYC Stroke VictimIn a groundbreaking decision that sends shockwaves through the financial industry, Queens Supreme Court Justice Bernice Siegal has ordered Citibank to pay a staggering $3.5 million to an 80-year-old New York stroke victim, Leileth Faye Graham. This monumental ruling not only brings justice to Graham but also sets a precedent for consumer protection in electronic transactions.
Graham's story is one of tragedy and betrayal. Despite being a legally blind, bed-bound individual who never traveled outside her state, Citibank allegedly allowed her niece, Joan Hope Bowden, to make 211 unauthorized withdrawals from Graham's account in Massachusetts. The sheer scale of the theft is staggering – nearly $135,000 was siphoned off through ATM withdrawals, while 15 wire transfers bled another $638,000 from Graham's account.
But what's even more disturbing is that Citibank allegedly ignored "clear red flags" and failed to investigate or return the stolen funds. The bank's inaction not only led to a significant financial loss for Graham but also denied her access to essential care and services that could have improved her quality of life. As her niece, Ingrid Gayle, poignantly noted, "Had Citibank properly followed its own security procedures on the Citibank accounts following the ATM withdrawals, the account would have been flagged, thereby preventing the subsequent wire transfers."
The court's decision is a scathing indictment of Citibank's negligence and lack of accountability. By concealing critical evidence for over 14 months in violation of court orders, the bank has been slapped with a $10,000 fine and treble damages under the Electronic Funds Transfer Act. This ruling sends a clear message to financial institutions: they will be held accountable for their actions (or inactions) when it comes to protecting consumers' rights.
Graham's case is particularly poignant given her remarkable life story. A native of Jamaica who emigrated to the US in the 1970s, she went on to secure two degrees from reputable universities – Manhattan College and Pace University. Her career as a legal secretary for Shearman & Sterling, which represented Citibank for many years, is a testament to her hard work and dedication.
However, Graham's life took a devastating turn in February 2020 when she suffered a stroke that left her bed-bound. Despite her niece's efforts to care for her, the lack of financial resources has made it impossible for them to provide the necessary support and services. As Gayle noted, "If the money was available at the time, Leileth would have renovated her apartment, gotten lifts to help her get out of bed, reconfigured the bathroom, and gotten a specialized vehicle to take her places."
The implications of this ruling are far-reaching and significant. It establishes that banks bear the burden of proof in cases of unauthorized transactions, rather than consumers. This shift in responsibility will undoubtedly have a ripple effect throughout the financial industry, forcing institutions to re-examine their security procedures and accountability measures.
As we reflect on Graham's story, it serves as a powerful reminder of the importance of consumer protection in electronic transactions. We must continue to push for greater transparency and accountability from financial institutions, ensuring that consumers like Leileth Faye Graham are not left vulnerable to exploitation.
In conclusion, this landmark ruling is a testament to the power of justice and the resilience of individuals who refuse to give up in the face of adversity. As we celebrate this victory, let us also acknowledge the ongoing struggle for consumer protection and continue to advocate for greater accountability from financial institutions.
#Society #Citibank #LeilethFayeGraham #NewYork #Queens #SupremeCourtJusticeBerniceSiegal
