![]() Revlon lenders said they believed Citibank was wiring prepayments for a loan. If the beneficiary is entitled to the money and did not know it was accidentally wired, they can keep it. People walk past a Citibank branch in New York, New York, USA, 16 January 2020.Ĭitibank in New York, USA - Justin Lane/EPA-EFE/ShutterstockĬitibank struggles to get mistakenly wired money back Mandatory Credit: Photo by JUSTIN LANE/EPA-EFE/Shutterstock (10528389a) A Pennsylvania couple faced felony charges after spending money accidentally deposited in their account.īut New York law has exceptions to this rule, known as the “discharge-for-value-defense.” Accidental transfers are common in the digital age, and wires can be paid back instantly. The law usually punishes those who spend money accidentally deposited in their accounts. Citibank filed a lawsuit in August seeking the return of its funds, but it still has not received $500 million from 10 investment advisory firms after the accidental transfer. ![]() Some lenders did return the money, but others did not. ![]() (C) accidentally sent $900 million to Revlon’s lenders. (C)bank accidentally wired almost 100 times that amount, including $175 million to a hedge fund. (C)bank, which was acting as Revlon’s loan agent, meant to send about $8 million in interest payments to the cosmetic company’s lenders. After committing one of the “biggest blunders in banking history,” Citibank won’t be allowed to recover the almost half a billion dollars it accidentally wired to Revlon’s lenders, a US District Court judge ruled.
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