Michael Zidell, who previously sued Citibank over a $20 million crypto romance scam, has now filed a second lawsuit against East West Bank and Cathay Bank. In a complaint filed Tuesday in California federal court, Zidell accused the two banks of “turning a blind eye to their statutory duties and obligations.”
Zidell alleges he transferred nearly $7 million through 18 transactions to accounts at East West Bank, and over $9.7 million via 13 transfers to Cathay Bank—funds he says ended up in the hands of scammers.
This follows his June 24 lawsuit against Citibank, in which he claimed the bank failed to detect red flags in 12 transfers totaling approximately $4 million.
Romance Sparked on Facebook Leads to Scam NFT Investments
In his lawsuits, Zidell claimed that a woman named “Carolyn Parker,” who presented herself as a business owner, contacted him on Facebook in early 2023. The two quickly developed a romantic relationship.
About a month in, Parker allegedly told Zidell she had made millions investing in non-fungible tokens (NFTs) and encouraged him to do the same, directing him to a specific trading platform.
Zidell chose to invest and, over the following months, said he made 43 transfers totaling more than $20 million to various bank accounts provided by the trading platform. The platform allegedly claimed the funds needed to be routed through multiple banks due to high customer deposit volumes.
He said by April 2023, the website for the platform “was suddenly gone,” along with his millions.
“Romance scam. Rug pull. Pig butchering. These are just some of the terms to describe the scam that befell the Plaintiffs.”
East West and Cathay Banks Accused of Enabling Fraud
Mirroring his lawsuit against Citibank, Zidell’s new complaint seeks to hold East West Bank and Cathay Bank accountable for negligence and for allegedly acting as “aiders and abettors” in a securities fraud scheme.
According to the filing, the banks “recklessly provided material assistance” to Parker and her alleged co-conspirators by opening accounts, facilitating wire transfers, and offering services that enabled the NFT scam to operate.
The lawsuit argues that both banks had a legal obligation to monitor for suspicious activity but “failed to detect clearly suspicious transactions.” Zidell claims that the large, round-sum transfers, among other red flags, should have prompted the banks to investigate further.
Lawsuit Alleges Banks Responsible for Facilitating Elder Abuse
The lawsuit also accuses East West Bank and Cathay Bank of “aiding and abetting elder abuse”—a claim not included in Zidell’s earlier case against Citibank.
While Zidell’s age isn’t specified in the complaint, California law defines an elder as anyone aged 65 or older.
He is seeking compensatory damages, legal fees, and interest, with the case to be decided by a jury.
