Bank of America accused of negligence by law firm resulting in improper wire transfer

By Noddy A. Fernandez | Jun 7, 2018

PHILADELPHIA — A law firm is suing Bank of America Corp., citing alleged breach of an escrow control account agreement and negligence.

O'Neill, Bragg & Staffin, PC and attorneys Gary Bragg and Alvin Staffin filed a complaint May 18 in the U.S. District Court for the Eastern District of Pennsylvania, alleging that Bank of America breached its duty of good faith and committed actions and/or inactions that constituted negligence by failing to exercise ordinary care in the execution of a cancellation/stop payment request in connection with a fraudulent wire transfer order.

According to the complaint, despite giving multiple stop payment directions to the defendant's agent, a transfer request caused by a computer hack was processed on Dec. 6, 2017, resulting in an improper transfer of the funds. 

As a result, Bragg and Staffin, as stockholder and owners of the firm, claim they were compelled to personally replenish $580,000 in client and expend $20,000 to prosecute a criminal case in Hong Kong against the alleged hacker. 

The plaintiffs said they hold Bank of America responsible because it allegedly failed to issue the validly and timely requested stop payment on the fraudulent wire transfer.

The plaintiffs request a trial by jury and seek judgment for negligence and award of damages in an amount to be determined at trial, together with other relief the court deems just and appropriate. They are represented by Philip S. Rosenzweig of Silverang, Donohoe, Rosenzweig & Haltzman, LLC in St. Davids, Pennsylvania.

U.S. District Court for the Eastern District of Pennsylvania case number 2:18-cv-02109-HB

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Silverang & Donohoe LLC U.S. District Court for the Eastern District of Pennsylvania

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