Six times in 17 days, a Rockland County man says, his JPMorgan Chase bank accounts were hacked and $225,000 were stolen, but Chase has refused to reimburse him for the last $44,000.
David Sabri accused Chase of violating the Electronic Funds Transfer Act, in a March 28 complaint filed in U.S. District Court, White Plains, and is demanding treble damages for his losses.
Sabri discovered unauthorized transfers on Jan. 31 when access to his personal bank account was blocked because of suspicious activity. Someone had made two transfers totaling $90,000 to a business account in his name and Sabri Realty Company in Illinois.
He told Chase that he was not familiar with Sabri Realty Company and is not involved in any real estate business.
Chase canceled the transfers, verified that Sabri had not opened the Sabri Realty Company business account, returned $90,000 to his personal account, and referred the matter to its fraud team.
Sabri, at Chase’s behest, transferred all of the funds to a new account on Feb. 1 to protect himself from fraud.
“Somehow, the identity thief immediately learned about the second account and promptly initiated an online transfer of $90,000,” the complaint states, “to another unfamiliar business account registered to the Sabri Realty Company.”
Once again, according to the complaint, Chase returned $90,000 to Sabri’s personal account and confirmed that he had not opened the second Sabri Realty Company business account.
Sabri says he revoked authorization for electronic fund transfers and told Chase to approve only transfers made in-person at a Chase branch by someone with valid identification. He filed a report with Ramapo police, at Chase’s request, and faxed a copy to the bank.
Then on Feb. 14, his account was hacked again. Two transactions were initiated by telephone, totaling $24,000, and going to an account under the name Vincenthia N. Lair in Houston, Texas. Sabri alerted the Chase fraud department.
Two days later, Feb. 16, another $20,000 was transferred to the same Houston account, according to the complaint. Again, Sabri notified the bank’s fraud department, and he was told to file a new police report.
Chase notified Sabri on Feb. 17 that it had completed its investigation of the Feb. 14 transactions. But this time, according to the complaint, Chase rejected his claim.
“We found that the transaction was processed according to the information you provided or was authorized,” Chase said. “No adjustment will be made to your account at this time.”
On the same day, Sabri reported the Feb. 16 incident to Ramapo police and on Feb. 23 hand-delivered a copy to a Chase branch in Monsey.
Chase, he claims, still has not issued a report on the last incident and has not reimbursed his account.
The Electronic Funds Transfer Act requires banks to investigate such alleged errors on consumer bank accounts, the complaint states, and report findings within 10 days.
If Chase had done so, Sabri says, it would have discovered that he had not consented to the disputed transactions; he had revoked authorization for electronic transfers and approved only in-person transfers at bank branches; Chase had previously concluded that he was the victim of identity theft and the thieves had opened at least two accounts under his name; nothing in Chase’s records connect him to Vincenthia N. Lair; he has no history of making false or unverifiable fraud reports; he has no history of irresponsible or fraudulent account use; he has no criminal history; and no proof exists that refutes his claims.
Chase spokeswoman Briana Curran said she can’t comment on pending litigation.
Sabri is represented by Brooklyn attorney Moshe O. Boroosan.
