NYC granny loses life savings to online scam — and she’s placing the blame on banks: lawsuit
Mortellito has wrestled with “a heavy sense of guilt” since falling victim to the scam, her family told The Post.Courtesy of Robert Georges
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An 86-year-old grandmother from Manhattan’s Upper East Side is taking several major banks to court after losing her entire life savings to a sophisticated online scam that drained her accounts of roughly $700,000.
Upper East Sider Nina Mortellito, 86, was scammed out of her entire life savings — because of her banks’ negligence, the lawsuit contends.Courtesy of Robert Georges
According to a lawsuit filed Friday in Manhattan Supreme Court, the ordeal began in August 2023 when a pop-up message appeared on Nina Mortellito’s computer, falsely warning that her bank accounts had been compromised. Believing the alert was legitimate, Mortellito followed the fraudsters’ instructions over the next nine months—unknowingly funneling hundreds of thousands of dollars to the scammers under the guise of “protecting” her assets.
Court documents state that the elderly victim, who suffers from age-related memory issues, withdrew about $275,000 from her Merrill Lynch accounts at the scammers’ direction. The criminals convinced her that the funds needed to be converted into gold bullion to remain “secure.” She also wired $150,000 from her TD Bank account to a bullion dealer in Texas, mailed a $30,000 check, and withdrew more than $100,000 from her UBS accounts—all at the fraudsters’ urging.
Mortellito withdrew a total of around $275,000 from her Merrill Lynch accounts and transferred it to the scammers, according to court papers.Getty Images
Family members say these transactions were wildly out of character. In over 30 years of banking with TD Bank and two decades with UBS, Mortellito had never withdrawn more than $5,000 at a time.
The lawsuit alleges that the banks failed to act despite clear warning signs. In 2022, they had even added Mortellito’s niece as a co-trustee on the accounts to provide additional oversight, recognizing her vulnerability to potential scams. Still, the banks did not intervene or flag the unusual activity, according to the complaint.
“We are extremely disappointed the banks did not act according to reasonable professional standards,” said Mortellito’s nephew-in-law, Stephen Kuhn. “We’re left with no choice but to bring this lawsuit. We hope it leads to meaningful changes in how banks protect vulnerable customers from these devastating scams.”
Mortellito’s attorney, Robert Georges of Konta Georges & Buza PC, said the institutions failed to meet their duty of care. “Banks must take reasonable steps to protect their customers—especially seniors, who are uniquely susceptible to online fraud,” Georges said. “In this case, repeated failures of due diligence caused our client to lose her life savings.”
Beyond the financial loss, Mortellito’s family says she has been left heartbroken and burdened with guilt, unable to enjoy the simple pleasures she once loved—like theater outings, dinners with friends, travel, and gift-giving.
The lawsuit seeks unspecified damages for negligence, with her legal team vowing to hold the financial institutions accountable.
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