The scam began in August 2023, using fear and urgency to manipulate 86-year-old Nina Mortellito. Pop-up warnings appeared on her computer, falsely claiming her bank accounts had been hacked. What followed was months of deception that ultimately wiped out her entire $700,000 life savings.
According to a lawsuit filed in Manhattan Supreme Court, the Upper East Side resident — who suffers from age-related memory loss — was convinced to make repeated withdrawals over nine months under the pretense of “safekeeping.”
The transactions were highly unusual. For more than 30 years, Mortellito had never withdrawn more than $5,000 at a time. In 2022, her niece had even been added as a co-trustee to provide financial oversight. Despite these safeguards and the sudden change in behavior, the banks allegedly failed to intervene.
Court documents say Mortellito was persuaded to believe her money was in danger and that converting it into gold was the only way to protect it. She withdrew roughly $275,000 from Merrill Lynch accounts, wired $150,000 from TD Bank to a Texas gold dealer, mailed a $30,000 check, and withdrew more than $100,000 from UBS accounts — all at the scammers’ direction.
Her legal team is now suing the banks for negligence, arguing they ignored clear warning signs and failed to protect a vulnerable elderly client.
Impersonation scams like this are becoming increasingly common. Federal data shows such scams are now four times more frequent, with seniors losing a record $4.8 billion to fraud in 2024.