Consumer complaint received 2019-11-14 00:00:00
Product: Money transfer, virtual currency, or money service — Foreign currency exchange
Issue: Fraud or scam — 
Company: WEBSTER BANK, NATIONAL ASSOCIATION

Complaint narrative:
Dear Sirs, This matter concerns violations of the foreign wire transfer provisions of the Dodd Frank Act of XXXX as well as breach of the respective professional duties of care owed by the acting attorney and the banks involved in the foreign wire transfer. 

In late XXXX of this year, I travelled to Rhode Island as the attorney-in-fact for my daughter XXXX, to sell her home which is located at XXXX XXXX XXXX XXXX, XXXX, RI. I am a U.S. citizen and attorney residing in XXXX, XXXX ; my daughter is also a U.S. citizen and at that time was completing law school studies in XXXX. As she was going through final exams in XXXX, it was not possible for her to handle the sale personally. 

An offer on the house of the asking price {$390000.00} was received in early XXXX from XXXX and XXXX XXXX, ( residents of XXXX XXXX, Connecticut ), and accepted by XXXX. The closing was scheduled for XX/XX/XXXX in the offices of our attorney XXXX XXXX in XXXX. Due to travel schedule issues, Mr. XXXX handled the closing transaction for our side and I signed the relevant documents in advance on behalf of my daughter. XXXX XXXX 's law firm represented the buyers. 

Shortly before the closing date, I provided instructions to the buyers ' representatives that the sale proceeds ( after the usual deductions such as the realtor commission, legal and closing fees ) were to be sent to XXXX 's bank account at XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, XXXX XXXX along with her account number and the bank 's identification information. I asked that the transfer be euro-to-euro, that is, that the currency conversion cost and the transfer cost be deducted on the U.S. side of the wire transfer, because of the fact that at that time, XXXX had only one bank account in her name and that bank account was domiciled at XXXX XXXX XXXX in XXXX. After some questions in this regard, the buyers agreed to this request. 

As I had requested a foreign wire transfer of over {$20000.00} be done by my own attorney from my own account at XXXX XXXX  XXXX to my own account at XXXX  XXXX XXXX in XXXX just two months before, and this had taken place without incident, in keeping with publicly posted currency conversion rates, I expected the same fair dealing and transparency. I certainly expected that the closing attorney ( XXXX ) or the transfer bank would comply with the law and contact me should there be any irregularities or issues. At that time I was unaware of the requirements of the Dodd Frank Act relating to transparency of foreign wire transfers but I was reachable by email and phone at the time of the transfer as well as in the two days following the transfer and could have been contacted to ensure such transparency. I wasn't. 

The transfer was handled by XXXX XXXX XXXX XXXX XXXX, Connecticut and specifically by Mr. XXXX XXXX. The settlement amount in the buyer 's attorneys ' hands ( after deduction of realtor 's fees, lawyer 's fees, etc. ) and available for transfer on XX/XX/XXXX was {$370000.00}. This amount is not in dispute. 

Mr. XXXX XXXX, attorney handling the foreign wire transfer for the buyers, has defended the wire transfer that was made to XXXX 's account stating that it was a " normal and customary transfer ''. We are literally outraged that Mr. XXXX and XXXXXXXX XXXX  in XXXX XXXX, CT could treat the theft of over {$12000.00} as a " normal and customary transfer. '' The normal and customary transfers that took place on XX/XX/XXXX are clearly described in the following link which summarizes market movements for that date. 

Link : https : XXXX The highest dollar to euro rate was .896 The lowest dollar to euro rate was .8929. 
The average dollar to euro rate was .8944 If the highest rate practiced on the spot inter bank market that day had been used by XXXX, the amount that would have arrived on XXXX 's account in XXXX would have been XXXX euros. 

If the lowest rate had been used, the amount would have been XXXX euros. 
If the average rate had been used, the amount would have been XXXX euros. 
Instead, the amount that arrived on XXXX 's bank account on XX/XX/XXXX was XXXX euros. The dollar to euro rate that XXXX used was XXXX -- not even close to ANY of the publicly practiced rates above. The difference between the AVERAGE conversion rate used that day on the spot inter bank market and the rate that XXXX used resulted in a XXXX euro loss to XXXX. 

In response to our correspondence questioning this transfer, XXXX XXXX has claimed that it was under contract with XXXX XXXX XXXX XXXX  XXXX ( a notorious defendant which has had to settle class action suits over the past several years in the very area of foreign wire transfers for hundreds of millions of dollars ) for foreign wire transfer. Thus, XXXX says, it was " obligated '' to use XXXX XXXX XXXX XXXX   XXXX 's rate. 

XXXXXXXX XXXX was then, and is now, fully informed of XXXX XXXX XXXX XXXX XXXX 's abuses in this area as they have been well publicized and thus, at the very least, it was negligent in using XXXX XXXX XXXX   XXXX 's conversion rate which is much more disadvantageous than any that I have seen for that time period. The fact that neither Mr. XXXX nor XXXX nor XXXX XXXX XXXX XXXXommunicated with us the conversion rate that they were to be going to be employing as well as transfer costs and the amount that would be received is not only in outright violation of the Dodd Frank Act but also exhibits a blatant lack of due care. The disparity between the XXXX XXXX XXXX XXXXXXXX conversion rate is inconsistent with any publicly available conversion rate to the point that either the XXXX XXXX XXXX XXXX or XXXX XXXX or the buyers attorneys have profited illegally. We do not know precisely who because we dont have the information on the foreign wire transfer statement. XXXX 's law firm has failed, in answer to several requests, to provide the foreign wire transfer statement to us. But it doesnt matter, considering the applicable state laws on vicarious liability ; unless I have completely misunderstood those laws, they should all be liable. 

As designated attorney-in-fact for my daughter XXXX, I was easy to contact either by email or phone to confirm that this outrageous rate would be acceptable. It wasn't, and Mr. XXXX ( and/or XXXX ) knew that it wouldn't be. For either XXXX or the XXXX law firm to profit to this extent from this clear violation of banking laws is clearly not only in violation of their duty of due care and due diligence but illegal. 

The obligation of due care which was borne by both of them, as agent of the buyers, and XXXX, as your own agent, clearly was not met by doing business with a bank that has a history of abuses in this specific area of foreign wire transfers. I have forwarded numerous articles to them ( going back years ) on  the subject of XXXX XXXX XXXX XXXX XXXX. The XXXX XXXX XXXX XXXX XXXX is a repeat offender in this area ; my daughter is not the victim of a " one and done. 

Given the circumstances, we are seeking restitution of the illegally diverted funds, i.e. XXXX euros. We further consider that in the absence of any legal justification for their agents ' acts, the buyers have not performed and they remain liable for the full settlement amount. 

We have notified XXXX XXXX whose XXXX, Massachusetts law firm first ordered this transaction and XXXX XXXX of XXXXXXXX XXXX in XXXX XXXX, CT ( who was the individual at the bank that carried out the foreign wire transfer ) of the above situation in an effort to resolve this matter on XX/XX/XXXX by email and have not received any response from them. I understand that there is a six month time limit to enter complaints with the Consumer Financial Protection Bureau. As mentioned, so far as we know, the transfer would have taken place on XX/XX/XXXX. 

We respectfully request your assistance in the resolution of this matter. My daughter XXXX is currently enrolled in law school in XXXX XXXX XXXXXXXX and has authorized me to handle this matter on her behalf. Her email address is XXXX and her phone number is XXXX ( XXXX ) XXXX. If need be, I can provide you with a copy of the power of attorney for her financial/real estate affairs and a " procuration '' regarding her French bank account in her absence while she is in New York. 

Sincerely, XXXX XXXX Attorney-at-law, Licensed in MA, CT XXXX RI Formerly, XXXX XXXX XXXX XXXX XXXX XXXX Footnote : XXXX euros was equivalent to XXXX USD on XX/XX/XXXX according to the interbank conversion rates practiced on that date ( link. below XXXX : Euro to Us Dollar Exchange rate history : XXXX XX/XX/XXXX ( XX/XX/XXXX )

Company response to consumer: Closed with explanation