On July 17, 2023, Fishman Haygood attorneys Jason Burge and Brennan O’Keefe brought a petition for damages on behalf of Mustafa Mustafa (“Petitioner”) against JPMorgan Chase Bank (“Chase Bank”) and Foris Dax, Inc. d/b/a Crypto.com (“Crypto.com”) in the 24th Judicial District Court for the Parish of Jefferson (Louisiana). The petition alleges that Chase Bank and Crypto.com violated the Electronic Funds Transfer Act (“EFTA”) when the financial institutions refused to reimburse the Petitioner for unauthorized fund transfers amounting to nearly $100,000.
As stated in the complaint, from August 22, 2022, through October 26, 2022, unknown perpetrator(s) unlawfully accessed the Petitioner’s Crypto.com account, which was linked to his Chase Bank account. The perpetrator(s) then executed unauthorized wire transfers and other electronic transactions from the Petitioner’s bank account to his Crypto.com account. Those funds were then withdrawn and deposited into unknown accounts assumed to be held by the perpetrator(s).
The EFTA limits consumer liability for unauthorized electronic fund transfers, which are defined as transactions that are initiated by someone other than the consumer and which do not benefit said consumer (See 15 U.S.C. § 1693). Further, under the EFTA, financial institutions are obligated to thoroughly investigate and promptly credit consumer accounts when fraud is apparent.
As detailed in the complaint, the Petitioner did not request, authorize, or otherwise approve the transactions that transferred money from his Chase Bank account into his Crypto.com account. Similarly, the Petitioner did not request, authorize, or approve the transactions that withdrew those funds from his Crypto.com account and deposited them into unknown accounts. With the money essentially lost to those instigating and completing the fraudulent transfers, the Petitioner also does not stand to benefit from these transactions.
Despite immediately and repeatedly disputing the charges with both Chase Bank and Crypto.com, to date the Petitioner has received only a $7,000 “temporary credit.” The complaint details the Petitioner’s request of the Court to award all damages to which he is entitled, including a refund of each fraudulent transfer received in his name with interest on the refundable amount.
If you or someone you know has lost money because of an EFTA violation, Fishman Haygood’s team of experienced investment fraud lawyers can help. Our firm has helped hundreds of clients recover their losses due to fraud or negligence. Contact us today.
