A New York judge has ruled that Citibank is financially responsible for failing to stop a massive fraud scheme that drained hundreds of thousands of dollars from an elderly Queens woman who was physically unable to manage her own affairs.
The decision orders the bank to pay nearly $3.5 million after determining it overlooked obvious warning signs and mishandled the case once the theft came to light. In a Dec. 19 ruling, Queens Supreme Court Justice Bernice Siegal found that Citibank failed to adequately protect Leileth Faye Graham, an 80-year-old stroke survivor who has been legally blind and bed-bound since 2020.
The court ordered Citibank to pay treble damages under the Electronic Funds Transfer Act, plus interest and penalties, after more than $772,000 was fraudulently withdrawn from Graham’s accounts. The total judgment approaches $3.5 million. The judge also sanctioned the bank $10,000 for concealing key evidence for more than 14 months despite court orders requiring its disclosure.
According to court filings, the theft involved more than 200 ATM withdrawals made in Massachusetts, a state Graham did not travel to, as well as numerous wire transfers. The withdrawals and transfers were allegedly carried out by a family member while Graham was incapacitated in New York. Roughly $135,000 was taken through ATM activity, with wire transfers accounting for an additional $638,000.
Justice Siegal concluded that Citibank ignored clear red flags and failed to follow its own security procedures, which could have flagged the suspicious activity and prevented further losses. The ruling states the bank neither conducted a proper investigation nor returned the funds once the unauthorized transactions were reported.
Citibank has denied wrongdoing and appealed the decision, arguing it no longer possesses the missing funds and raising questions about the scope of the judgment.
Graham’s niece and caregiver, Ingrid Gayle, said the drawn-out legal process has been painful for her aunt, who now depends on Medicaid for care. She said any recovered funds would be used to improve Graham’s quality of life, including renovating her apartment and securing specialized transportation.
“My hope is that something will come through, so that she gets to enjoy something out of it before she passes away,” Gayle said.
Court-appointed guardian Abraham Mazloumi currently oversees Graham’s finances. Court records show the extent of Graham’s condition came to light after relatives discovered unsafe living conditions in her home, prompting an Adult Protective Services investigation.
Before her health declined, Graham lived independently and worked for decades in the legal field, including as a legal secretary at Shearman & Sterling, a firm that represented Citibank for years. She immigrated to the United States from Jamaica in the 1970s, earned degrees from Manhattan College and Pace University, and was known by family members as frugal and self-reliant.