Federal prosecutors charged a former bank executive with stealing millions of dollars from the account of an elderly client, Financial Advisor reported.
49-year-old Christopher Walters, who was a vice president with Northern Trust Company in Miami, Fla., pleaded not guilty to eight counts of bank fraud and one count of aggravated identity theft following his arrest in June.
Walters is accused in the theft of $3 million from the client’s account over a 10-year period that involved about 200 transactions.
The Miami Herald reported that the client who was the victim of the alleged scheme was 81-year-old Elizabeth Ludwig Madden, whose grandfather’s Miami bank was acquired by Northern Trust in the early 1970s. Madden filed a lawsuit in January over the alleged misconduct.
Walters allegedly falsified emails and altered credit card statements to make it appear that Madden had authorized payments from her trust to cover his personal credit card debt and the rent on his CrossFit gym. He then forwarded the falsified materials to Northern Trust employees to generate fraudulent checks and wires, according to the lawsuit, which sought at least $35 million in damages.
Northern Trust was accused in the suit of civil exploitation of a vulnerable adult, breach of fiduciary duty, negligent supervision, negligence, fraud and violations of the Computer Fraud and Abuse Act. The complaint alleged Northern Trust “did not merely fail to prevent Walters’ misconduct; it facilitated it” through inadequate internal controls over trust disbursements.
Aside from the criminal charges against Walters, Northern Trust also filed a complaint against him in court, accusing him of breaching his fiduciary duties and committing fraud against a client by doctoring emails and credit card statements to disguise unauthorized disbursements.
After Walters failed to respond to the lawsuit, a federal judge entered a default judgment against him and awarded Northern Trust $75,001 in damages.
“When we learned that a former employee engaged in fraudulent activity, we acted swiftly by reporting the matter to the appropriate law enforcement authorities and cooperating fully with their investigation,” said Northern Trust spokesperson Landis Cullen. “We also pursued civil litigation and obtained a judgment against the former employee. We appreciate the efforts of law enforcement in initiating a criminal proceeding before the court.”
Walters, who was terminated from the bank in the fall of 2024, was ordered detained by a magistrate judge after his indictment on and subsequent arrest in Orlando.
Hyman Cotter routinely represents investors harmed when financial professionals and their firms engaged in misconduct that caused their clients investment losses. Our team includes lawyers who have worked for large financial institutions, including Morgan Stanley and UBS Financial Services, and regulatory bodies such as the SEC. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Hyman Cotter at (833) 665-0784 or through our online contact form for a no-cost evaluation of your matter.
