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Citi Bank under fire for alleged mishandling of a six-figure trust fund

TL;DR

  • Scott Jacobson from Skokie, Illinois, sues Citibank after $120,000 disappears from a trust fund intended for his sister’s Alzheimer’s care.
  • Jacobson discovers unauthorized international wire transfers from the account but faces delays and advice to seek legal help from Citibank.
  • Citibank acknowledges not getting Jacobson’s approval for transfers but claims to have sent alerts; the bank also cites Jacobson’s delayed legal action beyond the record-keeping deadline.

In Skokie, Illinois, a legal dispute has surfaced involving a resident, Scott Jacobson, and the global banking corporation Citi Bank. The case, highlighted by NBC Chicago, revolves around an alarming disappearance of $120,000 from a trust account managed by Citi Bank. This account, initially containing $150,000, was designated for the care of Jacobson’s 65-year-old sister, who is battling Alzheimer’s disease.

The issue came to light on October 14th, 2021, when Jacobson discovered the substantial shortfall in the account. The missing funds, intended to ensure continuous care for his sister, have significantly disrupted their plans. Jacobson expressed his immediate concern for his sister’s well-being, stating, “I was shaking because I was more concerned about my sister than I was about anything else.”

Investigating the unauthorized transactions

Jacobson’s inquiry into the missing funds revealed that they were transferred through three international wire transactions from Bangkok, Thailand, without his consent. In response to this discovery, Jacobson promptly filed three fraud affidavits with Citi Bank, expecting the bank to take swift action. However, the bank’s response fell short of his expectations.

The advice given to Jacobson by his personal banker at Citi Bank underscored the complexity of the situation. He was told, “Well, you’re gonna have to get attorneys,” suggesting a route towards legal recourse rather than immediate resolution by the bank.

Citi Bank’s stance amid controversy

Citi Bank, on its part, maintains that it followed all regulatory procedures in handling the situation. Despite acknowledging that the transfers were made without Jacobson’s prior approval, the bank contends that it fulfilled its obligation by notifying him through text and email. This claim stands in contrast to Jacobson’s assertion that he received no such notifications.

A critical aspect of the dispute is the timing of Jacobson’s legal challenge. Citi Bank points out that Jacobson’s demand for reimbursement was made well after the 60-day deadline for keeping records of such transactions. The bank’s statement clarified, “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.”

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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