Consumer complaint received 2023-08-16
Product: Checking or savings account — Checking account
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: KEYCORP (WA)

I have attached 4 documents attached regarding a case I have with Key Bank Corp. 
Key Bank transferred {$59000.00} from my business checking account to XXXX XXXX  days after I put a hold on my account for apparent fraudulent activity. This actually affected 5 total accounts 4 consumer and 1 business. Key Bank sent a letter after I filed a complaint with the OCC, The FBI, The Washington state attorney General 's office. Key Bank responded by e mail to let me know they could not recover the funds and thus it is not their issue any longer. I will attach the time frame of all activity. 

Timeline of events Monday the XXXX of XXXX at XXXX received a call from Key bank about unusual activity on our account we declined to give a password for this call, same call on the XXXX of XXXX. 
Tuesday the XXXX of XXXX, we stopped at Key Bank branch in XXXX to report fraud. 
Thursday XX/XX/XXXX XXXX got a notification of account balance. 
Called the bank to report fraud immediately. 
Spent close to an hour on the phone putting a stop to the fraud and was assured that the transfer would be stopped and account on block as the charges were pending. 
Texted my mother joint accounts at XXXX to tell her what happened. 
XXXX XXXX  sharp called Key bank in XXXX XXXX Washington to speak to XXXX XXXX our personal banker. Did not get ahold of her until around XXXX that day where she put a stop on our account, also made an appointment to meet at key bank at XXXX Monday the XXXX. 
I then tried to use my card that day in XXXX XXXX to see if they did put a stop to my debit cards and found the card did not process the transaction. 
Went to key bank at XXXX after XXXX called to change the time, on the XXXX of XXXX with my partner and mother all of whom we share accounts to open new accounts, unfortunately there was some confusion with the business bank account as they could not open one for some reason. Went into the bank 2 days later on XX/XX/XXXX to speak to the branch manager and he tried to open an account but to no avail. 
He said he was going to work on it and send it to XXXX desk. 
Found out that day that the reversal of the funds had been taken back out of the account on XX/XX/XXXX We went back in on the XXXX to complete the opening of the new business account, XXXX XXXX stated we had nothing to worry about, there was just a hold on the funds while there was an investigation, and the funds never left the bank. That it had been moved from fraud investigation to corporate investigations and we would have the funds no later than the XXXX. 
Days later called XXXX and e-mailed the same update, an investigation was being conducted but the funds never left the bank. We were assured of this many times up until Thursday the XXXX at XXXX XXXX XXXX called and approximately XXXX hours between the business banking department and the executive client relations we spoke with XXXX and XXXX advised that the money was not recovered from XXXX Bank XXXX XX/XX/XXXX he could give no reason why we were not previously advised of this, or why we were advised funds were being held due to an investigation. He then escalated to XXXX in the executive clients relations department. It was due to this call we went into the bank immediately at XXXX sharp where we were told that the bank Key bank made the transfer on the XXXX of XXXX. 
Minutes Days taking every precaution to put a stop to this by blocking our account from any activity. We werent even told the funds have left the account until the XXXX. 
We were finally put in contact on the XXXX of XXXX with the executive case management team with our contact being XXXX ( no last name no e mail ) and given a case number with a phone number XXXX. Case number XXXX After speaking 2 times with XXXX and letting her know that Key bank is in violation of many laws all of which my partner knows very well as he was the Senior vice president of deposits for XXXX XXXX XXXX  for 13 years, she stated she would call us back with an update on XX/XX/XXXX and then ghosted us until today when I spoke to a receptionist and was told she is in meetings all day and this will need to wait until Monday. 
On Friday XX/XX/XXXX I sent out e mails to local news outlets to get our story out about what is transpiring, I received a phone call from XXXX XXXX and have been working with them since. I tried again to contact XXXX regarding the money with no phone call back, finally I had an appointment set for Monday the XXXX at XXXX. I called to speak to her but was told she would call back. I then called back at XXXX and got ahold of XXXX XXXX XXXX stated on recording that the Fraud department told her that the funds that left Key Bank was in fact transferred to XXXX XXXX  and those funds were gone from XXXX XXXX, I repeated this to her and said so you acknowledge that what you just told me was Key Bank released the funds on the XXXX to XXXX XXXX  after I put a hold on the account then in turn XXXX XXXX  released the funds to the perpetrators. She said that Key Bank is trying to recover the funds from XXXX XXXX. I then said to her she admitted the bank gave the funds away and that the bank was trying to recover them. I then stated that has nothing to do with me, it was clearly the banks mix up and instead of holding my funds they need to give me a provisional credit. XXXX said you said they gave you provisional credit I said yes, they did but Key Bank took it back on the XXXX of XXXX to pay XXXX Bank. I was aghast that she as the only point of contact didnt even realize this happened. I then asked if I could speak to a supervisor of hers, maybe someone in the fraud department, XXXX stated that she was the only one I could speak with, there was no other point of contact and that these investigations can take up to 90days. I stressed to her that I was going on the news and hiring an attorney to help expedite this case. XXXX then set up another phone call for Tuesday XX/XX/XXXX at XXXX XXXX XXXX. 
We as a small business have potentially lost {$59000.00} over a month ago because something happened internally in Key bank releasing all our funds to the perpetrators. I want to know how many times this has happened to unsuspecting small business owners with this bank and get the word out to everyone that does business with Key bank and tell them that their security protocols are not inline with federal regulations. 
XX/XX/XXXX spoke to XXXX XXXX at XXXX, I was then informed she had no further comments or answers on the matter and is just waiting for Key Banks Fraud department to get back to her. We then stated to her that we will start our search for an attorney, file complaints with the OCC and the Attorney General in Washington XXXX and in Ohio. 
XX/XX/XXXX I called XXXX XXXX  and spoke to a woman about the names of the individuals who took the money. I had found out the names the day of the original withdrawal. 
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX The Banker tried to look up those accounts by name and found no one by those names, she informed me that they represent over 150 different businesses and that it sounds like a prepaid debit or something of that nature. She then informed me that my bank should immediately contact the research analyst and process an XXXX form to XXXX I then called XXXX XXXX to tell her what I am working on what I found out, I had the receptionist tell her as I did not get ahold of her at this point. 
XX/XX/XXXX spoke to XXXX with XXXX XXXX office and she advised me to file a complaint with the FBI, I did an online letter and also called. 
XX/XX/XXXX I called the executive offices of key bank and was told by the receptionist that XXXX XXXX was unavailable to take my calls. I started to do my own research on lawsuits with key bank and came across a class action lawsuit that is being represented by XXXX XXXX in XXXX, I placed a call to them and also e mailed my timeline to see if I can get a reaction and some legal help with this matter. 
I will be doing my XXXX XXXX XXXX interview with the news outlet tomorrow and hopefully it will air this week. 
XXXX made an appointment with Brain Flick of XXXX XXXX at XXXX to see about taking on my case they specialize in litigation with banks and have XXXX similar cases right now. 

Timeline XXXX XXXX first call from bank about suspicious activity XXXX Third call so we stopped into the bank in XXXX to speak to a personal banker Thursday the XXXX XXXX got a notification of account balance XXXX on the phone with fraud department XXXX on the phone with XXXX with local branch key bank made an appointment to come in on the XXXX Monday the XXXX Wednesday the XXXX is when funds were gone out of my account all {$59000.00} were informed that the funds were still at the bank however found out on the XXXX that the bank transferred the funds to XXXX XXXX  Thursday XXXX completed opening the business account XXXX spoke to XXXX in executive client relations he confirmed the funds left the bank XXXX put in contact with XXXX XXXX with executive client relations. 
XXXX started my search for lawyers, and news outlets. 
XXXX XXXX confirmed that the funds were no longer at XXXX XXXX  and that they were trying to recover the funds. 
XXXX I called XXXX XXXX  and spoke to a member of their team where she informed me that Key bank has yet to file an indemnity form which I was told has yet to be filed. 
XXXX made an appointment with a law firm XXXX XXXX XXXX XXXX. XXXX. 
Just spoke to XXXX with executive relations and were told they received the OCC complaint, and no further phone communication will be allowed everything must be handled by letter. 
XX/XX/XXXX heard back from the Wa Attorney General and key banks statement. Key bank justified their opinion and stated that there was not time to take back the funds and referred to page XXXX stating that they bare no responsibility.