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An 86-year-old Upper East Side resident is suing multiple banks for negligence after falling victim to a sophisticated online scam that drained her of nearly $700,000 in life savings, the New York Post first reported.
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The alleged fraud began in August 2023, when a pop-up appeared on Nina Mortellito’s computer warning her that her bank accounts had been compromised. Over the next nine months, scammers reportedly manipulated Mortellito—who suffers from memory issues—into making a series of unusual and large financial transfers under the guise of protecting her assets.According to a lawsuit filed in Manhattan Supreme Court, Mortellito withdrew approximately $275,000 from Merrill Lynch accounts, wired $150,000 from TD Bank to a Texas-based gold dealer, mailed a $30,000 check, and took over $100,000 from UBS Bank accounts, all under fraudulent instructions. The scammers allegedly convinced her to convert funds into gold bullion to safeguard them.
Court papers highlight that these transactions were highly abnormal for Mortellito, who historically made modest withdrawals under $5,000. Her banks had reportedly added her niece as a co-trustee in 2022 due to concerns about her vulnerability, yet no red flags were raised internally during the course of these withdrawals, the suit claims.
Her family is now seeking damages and policy changes, criticizing the banks for failing to intervene despite clear warning signs. “We hope this lawsuit brings real change,” said Stephen Kuhn, Mortellito’s nephew-in-law.
The legal team, led by attorney Robert Georges, argues that financial institutions have a duty to protect elderly clients from exploitation. “The banks repeatedly failed to exercise due diligence,” Georges told the Post, adding that the family is “proud” of Mortellito for speaking out.
TD Bank declined to comment on the pending litigation. UBS and Bank of America, which owns Merrill Lynch, also offered no comment.
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