Compliance
Business Owner Sues First Horizon Bank After $6.52 Million Fraud Incident
A business owner has filed a lawsuit against First Horizon Bank after scammers allegedly drained $6.52 million from his accounts through fraudulent wire transfers. The complaint, brought forth by Misael Rosario and his companies, K&A Rosario Holdings LLC and MJR Fund I Inc., alleges that the bank allowed the transfers despite being aware of similar fraud cases involving other customers.
According to the lawsuit, the fraudulent activity occurred over three days in March 2026. A caller impersonated Rosario, claiming to have a new cellphone, and accessed the accounts from an unfamiliar New York IP address. Rosario's attorney stated that the scammers used publicly available information to verify their identity.
While law enforcement managed to recover some funds, over $4.5 million remains unreimbursed. The complaint also highlights a prior incident in January where First Horizon was notified of an account takeover involving a law firm, which resulted in $17.28 million being wired out of its trust account, with more than $6 million still missing.
Rosario expressed his shock at the situation, emphasizing the impact on his family’s future. The lawsuit raises significant questions about First Horizon's response to earlier fraud incidents and the measures taken to protect its customers. The bank has filed a motion for partial dismissal and intends to defend itself vigorously.
FAQ
What is the basis of the lawsuit against First Horizon Bank?
The lawsuit is based on allegations that First Horizon Bank allowed scammers to drain $6.52 million from the business owner's accounts through fraudulent wire transfers, despite being aware of similar fraud cases involving other customers.
How did the scammers gain access to the business owner's accounts?
The scammers impersonated the business owner, Misael Rosario, claiming to have a new cellphone, and accessed the accounts from an unfamiliar New York IP address using publicly available information to verify their identity.
What amount of money remains unreimbursed after the fraud incident?
Over $4.5 million remains unreimbursed after law enforcement managed to recover some funds from the fraudulent activity.
What prior incident involving First Horizon Bank is mentioned in the lawsuit?
The lawsuit mentions a prior incident in January where First Horizon was notified of an account takeover involving a law firm, which resulted in $17.28 million being wired out of its trust account, with more than $6 million still missing.
What is First Horizon Bank's response to the lawsuit?
First Horizon Bank has filed a motion for partial dismissal and intends to defend itself vigorously against the allegations raised in the lawsuit.