SKOKIE, IL - A Skokie resident's battle with Citibank over a substantial unauthorized withdrawal from a trust account earmarked for his sister's Alzheimer's care has come to light. Scott Jacobson discovered a $120,000 deficit in the account, initially containing $150,000, after three unauthorized wire transfers were made to Bangkok, Thailand.
Jacobson reported the theft to Citibank and filed three fraud affidavits. Despite his efforts to recover the funds, Citibank has denied his reimbursement request. The bank maintains that it had notified Jacobson of the transactions via text and email, a claim he disputes. Furthermore, Citibank stated that the demand for repayment was made after their 60-day deadline for keeping transaction records, during which time the communications were erased by a third-party vendor.
The case gained attention when NBC Chicago highlighted the severe implications it had on the care plans for Jacobson's sister. The funds in question were part of a trust endowed by their mother specifically for medical expenses related to Alzheimer's disease.
As of now, Citibank has recommended that Jacobson seek legal recourse. The situation underscores the challenges account holders face when dealing with unauthorized transactions and the importance of timely reporting and response by banking institutions.
InvestingPro Insights
In light of the recent unauthorized transactions issue at Citibank, it's essential to consider the financial health of the company. According to InvestingPro data, Citibank has a market cap of 80.54B USD and a P/E ratio of 6.68, suggesting it trades at a low earnings multiple. Over the last twelve months as of Q3 2023, the company has seen a revenue growth of 2.33% and a quarterly revenue growth of 6.61% in Q3 2023.
However, it's not all rosy. InvestingPro Tips highlight a declining trend in earnings per share and a prediction that net income is expected to drop this year. The bank is also noted to be quickly burning through cash. These factors could be significant in understanding the bank's current situation and its ability to handle such transaction disputes.
For those interested in more in-depth analysis and tips, the InvestingPro platform offers a wealth of additional insights. Currently, there are 13 more tips related to Citibank listed on InvestingPro, providing an extensive analysis for potential investors and interested parties.
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