Ex-Citibank Employee Confesses to Swindling Large Sum from Vulnerable Client

Person in suit putting dollars in jacket pocket. — Business man hiding money in jacket pocket - Corruption and Fraud Concept

Juan Velez, a former Citibank banker, admitted to exploiting a vulnerable elderly client for his own gain.

At a Glance

Citibank banker Juan Velez stole $166,000 from an elderly man with dementia.
Velez used the stolen funds to buy a Harley-Davidson motorcycle and pay off debts.
Velez accepted a plea deal for six months in jail and five years probation.
The case highlights the need for stronger protections against elder fraud.

Details of the Case

Juan Velez, who worked as a personal banker in a Manhattan Citibank branch, misused his position to steal $166,000 from a 79-year-old client over the course of a year. The client, suffering from dementia, was unaware as Velez used fraudulent accounts to siphon funds for personal luxuries, including a Harley-Davidson motorcycle. Velez masked these transactions by blaming the client’s frequent financial confusion on memory issues, which the client accepted as plausible.

His arrest in May 2023 marked the end of his illicit activities. Facing a possible 15-year sentence, Velez negotiated a plea deal, agreeing to a reduced punishment of six months imprisonment and a five-year probation period. Beyond the sentence, he must return the motorcycle and compensate Citibank for the stolen amount.

The Impact on Elderly Vulnerability

The case underscores the fiendish difficulty in preventing fraud against seniors, especially those with cognitive disabilities. Manhattan District Attorney Alvin Bragg reiterated the significant threat financial fraud poses to older citizens, emphasizing the importance of protecting them from deceit. Seniors like Velez’s victim often struggle to manage their finances, making them prime targets for exploitation.

“Today, Juan Velez is facing accountability for abusing his position as a personal banker to steal from a 79-year-old man suffering from dementia,” Bragg said in a statement. “We are committed to protecting older New Yorkers from fraudsters who target their well-earned savings.”

The Manhattan District Attorney’s Office encourages victims of elder abuse to contact their Elder Abuse Unit for help, providing a valuable resource for protection and assistance.

Lessons and Prevention

As a preventative measure, financial institutions are urged to implement stringent security protocols and monitoring systems to detect unusual activities, particularly involving elderly clients. City National Bank has provided several tips to help protect older individuals from such financial fraud, reinforcing the need for ongoing vigilance from families and financial advisors.

Awareness of such incidents reminds us of the responsibility of safeguarding our seniors against sophisticated schemes targeting their life savings. The combination of vigilance, legal protection, and community awareness can serve as a formidable means to protect those who are potentially vulnerable.