Citibank owes $14 million to 53,000 customers

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For 11 years, Citibank quietly pocketed $14 million from over 53,000 customers by using an 'automated sweeping program'. This program would automatically eliminate positive balances from customer's accounts - frequently those of low-income or deceased.

"The company knowingly stole from its customers, mostly poor people and the recently deceased when it... implemented the sweeps," said California Attorney General Jerry Brown Jr.

The program was brought to the attention by a whistleblower in 2001, but numerous reports have listed the individual as ignored and later fired. Much of the money was stolen from the poor customers because, according to the California Attorney General's spokesman, "they tend to be less organized financially."

Despite agreeing to the settlement after a three-year legal battle, Citibank refuses to admit any wrongdoing. Meanwhile, other executives stated that the program ran to line the pockets of those in charge of the bank.

In the words of a Citibank executive, “Stealing from our customers is a business decision, not a legal decision.” The same executive later said that the sweep program could not be stopped because it would reduce the executive bonus pool.

This kind of rampant corruption only stands to further tarnish the reputation of the American bank, which had also come under fire for charging customers interest on zero-balance accounts.

The accounts that were stolen from have been ordered to be repaid by June 1, 2009, with a 10 per cent interest on top. It just goes to show that eventually every criminal is brought to justice. In this case, 53,000 thefts. But the damage to the company will likely last much longer.