A New Windsor psychiatry practice has sued Citbank for more than $1 million for allegedly failing to safeguard a checking account from an imposter who stole $550,000.
Vitality Psychiatry Group Practice P.C. accused Citibank of negligence in a complaint filed last month in Orange County Supreme Court and moved on Oct. 17 to federal court in White Plains.
Vitality’s owner, Dr. Mitchell T. Cabisudo, claims that acts and omissions by Citibank caused him to lose access to his funds “to keep his business afloat, make payroll and pay other business bills.”
Vitality’s checking account was hacked this past March 28, according to the complaint.
Cabisudo received a call on his cell phone from an 800 number identified as Citibank. The caller claimed to be a representative from the bank’s fraud department who said Vitality’s bank account had been hacked and the account’s access code had to be changed to prevent fraudulent activity. The caller asked personal questions, purportedly as a security measure.
At the same time, the complaint states, the caller was on the phone with Citibank and was using the doctor’s personal information and password to gain access to the bank account.
Later, Cabisudo checked on his account and discovered that $550,000 had been withdrawn. He contacted Citibank and was told there had been unauthorized access to the account and a fraud alert had been placed on the account.
On March 29, he spoke with a fraud representative at the Chappaqua bank branch who confirmed unauthorized transactions.
Vitality had never used the credit or debit features of the bank account or withdrawn large sums of money, according to the complaint. And Citibank had never notified Vitality that the transfers were occurring.
On April 2, according to the complaint, Citibank said it had reversed the $550,000 transfer and would provide a provisional $550,000 so Vitality could continue to function. A new bank account was opened, to allow the remaining funds in the old account to be transferred.
But on April 4, Citbank allegedly blocked Cabisudo’s access to the old account, froze the new account, advised the doctor that the $550,000 was successfully stolen, and said it would take up to 90 days to investigate and resolve the matter. He claims he also was told that the investigation could be resolved and his account unfrozen if Vitality replaced the stolen $550,000.
Vitality is demanding $1,046,000 for alleged negligence, and $550,000 for alleged breach of contract.
Citibank spokesperson Hilary Weissman declined to comment on the lawsuit.
