Citibank ordered to pay NYC woman $3.5M after allegedly missing blatant signs of fraud
Citibank has appealed the order and claims it doesn’t have Graham’s money. Christopher Sadowski
Citibank Ordered to Pay Nearly $3.5 Million to Queens Stroke Victim After Fraud and Evidence Concealment
Citibank has been ordered to pay nearly $3.5 million to an 80-year-old Queens woman after a judge found the bank failed to detect obvious fraud in her accounts and later concealed key evidence during litigation.
In a Dec. 19 ruling, Queens Supreme Court Justice Bernice Siegal sanctioned Citibank $10,000 for concealing critical evidence for more than 14 months in violation of court orders. The case involves Leileth Faye Graham, a legally blind stroke victim who was once a legal secretary for a law firm that represented Citibank.
Justice Siegal also imposed treble damages under the federal Electronic Funds Transfer Act, citing Citibank’s refusal to refund more than $772,000 allegedly stolen from Graham’s accounts. The bank has denied wrongdoing and is appealing the ruling.
Graham’s niece, Ingrid Gayle, who now oversees her care, said the family hopes the case resolves soon so her aunt can benefit from the money while she is still alive.
“My hope is that something comes through so she gets to enjoy something out of it before she passes away,” Gayle said. “It would be heartbreaking to fight so hard for her money and have her never benefit from it.”
Court records show that Citibank was ordered to pay the damages for failing to investigate or return funds removed from Graham’s accounts without authorization.
According to court filings, another niece, Joan Hope Bowden, allegedly made 211 ATM withdrawals totaling about $135,000 in Massachusetts — a state Graham never traveled to while bedridden in New York. Fifteen wire transfers allegedly drained another $638,000 from her accounts.
The money was reportedly used for vacations, a Washington, D.C. property for Bowden’s daughter and son-in-law, and cash gifts to family members, according to a court-appointed evaluator.
Justice Siegal found that if Citibank had followed its own fraud detection procedures after the unusual ATM withdrawals, the accounts would have been flagged and the wire transfers prevented.
Graham immigrated to the United States from Jamaica in the 1970s. She earned degrees from Manhattan College and Pace University and worked at Time Warner, Time magazine, and later as a legal secretary at Shearman & Sterling. She never married or had children and purchased her Rego Park condominium in the 1980s.
Her health declined after a stroke in February 2020. When Gayle later visited her aunt, she found what court papers described as deplorable living conditions, including bedsores, spoiled food, and a filthy apartment. The situation prompted an Adult Protective Services investigation and the appointment of a legal guardian to oversee Graham’s property.
Graham now relies on Medicaid, according to court records.
The court also found Citibank failed to produce witnesses, recordings, and other evidence that could have led to an earlier resolution of the case.
Attorney Raymond Dowd, who represents Graham’s legal guardian, called the ruling a major precedent.
“This decision clearly establishes that banks are liable for unauthorized transactions,” Dowd said. “The burden of proof is on the bank, not the consumer. That’s huge.”
The total award includes three times the stolen amount, plus interest and damages.
Gayle said the funds would have been used to renovate her aunt’s apartment, install medical lifts, modify the bathroom, and purchase a specialized vehicle to help her get around.
“There’s no money for that now,” she said. “That’s what really bothers me.”
A source familiar with the case said the bank no longer holds Graham’s funds and questioned whether the judgment exceeded the scope of the proceedings.
Citibank declined to comment.
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