Citibank Faces Lawsuit Over $120K Disappearance From Client’s Account
In Skokie, Illinois, a resident is pursuing legal action against Citibank over the disappearance of $120,000 from a trust account designated for his disabled sister.
Scott Jacobson claims that his mother had placed $150,000 in a Citibank trust account to cover the expenses related to his 65-year-old sister’s ongoing battle with Alzheimer’s disease, according to recent reports.
Jacobson explains that the challenges of caring for his disabled sister escalated on October 14th, 2021, when he discovered that $120,000 had been unlawfully taken from the account. He expressed deep concern for his sister’s well-being in the wake of this discovery.
Reportedly, a Citibank teller informed Jacobson that three international wire transfers had been initiated from Bangkok, Thailand, without his authorization. In response, Jacobson promptly submitted three fraud affidavits to Citibank on the same day, anticipating the bank’s investigation. However, he was advised by a bank representative to seek legal assistance within the U.S. justice system.
Seeking clarification on the matter, Jacobson approached his personal banker, who suggested that he engage attorneys.
Additionally, Jacobson claims he did not receive any notifications regarding the unauthorized wire transfers. While Citibank asserts that it did not obtain Jacobson’s approval before authorizing the transfers, the bank contends that it notified him through text and email, maintaining full compliance with wire transfer regulations.
Despite Jacobson filing fraud affidavits on October 14th, 2021, Citibank argues that he initiated legal proceedings well beyond the 60-day record-keeping deadline.
Citibank asserts that “Jacobson, through counsel, first made demand on Citibank to repay the three wire amounts on Aug. 29, 2022. By that time, [the third-party vendor] had already deleted the emails and text messages sent to Jacobson.”