A Brooklyn resident has filed a lawsuit against Citibank, N.A., accusing the bank of failing to protect his funds after unauthorized withdrawals were made from his accounts.
Jonathan Isaac Shmuely filed the complaint on December 20, 2024, in the U.S. District Court for the Eastern District of New York, claiming violations of the Electronic Funds Transfer Act (EFTA).
The case centers on an incident in early June 2024 when Shmuely alleges he was drugged during a social outing and robbed of his personal belongings, including his bank cards and mobile phone. Upon regaining consciousness, Shmuely discovered that unauthorized transactions totaling approximately $14,809.15 had been made from his Citibank checking and savings accounts.
Despite promptly reporting the fraudulent activity and providing evidence, including police reports, Shmuely claims Citibank failed to conduct a reasonable investigation or restore his stolen funds.
The lawsuit outlines multiple attempts by Shmuely to resolve the issue with Citibank, including disputes filed between June and August 2024.
He asserts that the bank violated its duties under the EFTA by failing to investigate and provisionally recredit his account, and by wrongly imposing liability on him for the disputed amounts.
Shmuely alleges that this failure caused him severe financial distress and emotional harm.
Shmuely's legal team accuses Citibank of common law conversion by unlawfully retaining control over his funds and engaging in deceptive business practices in violation of New York General Business Law Section 349.
He seeks damages for economic losses and emotional distress, along with statutory damages under the EFTA and punitive damages for the bank's alleged willful misconduct.
In addition to financial compensation, Shmuely is requesting injunctive relief to prevent Citibank from further withholding his funds and reimbursement for attorney fees incurred during the legal process.
Shmuely is represented by attorneys Meir Rubinov, David Pinkhasov, and Daniel Cohen of Consumer Attorneys in Flushing, New York. The case is being heard under Case ID 1:24-cv-8733.