The following is based on real events. Names and some identifying details have been changed to protect the privacy of those involved.
Joe Professional (JP), a49 year-old accountant, reviews his 401k. While trying to view his account balances, somehow he withdraws the entire $720,000 balance of his 401k to his bank account. The next day, he sees that his bank account balance has dramatically increased, he thinks that the sale of his house must have gone through and funds deposited. It is more than he expected, but that was a welcome event! JP proceeds to go on a spending spree-- a car, a boat, vacation reservations, contributions to a few charities, one of which is definitely a scam.JP's bank, Big Bank (BB) does nothing to verify these transactions and processes about $220,000 in checks and electronic transactions over about two weeks. At this point, JP's soon-to-be ex-wife notices the extensive spending spree. Concerned that he may be up to nefarious schemes to prevent her from receiving her share of assets in the divorce that she filed, she contacts her lawyer who subpoenaed the bank records. Shocked at the liquidation of the 401k and extensive spending, her lawyer files a motion in the divorce proceedings.Under oath, JP denies any knowledge of making these transactions. He states that he sort of remembers checking his 401k balance but does not know how much money he has. When pressed, he becomes a little agitated and his lawyer asks for time to consult with his client. The client's daughter assures the lawyer that her dad would not do something like he was being accused of, but acknowledges that he has been acting weird. Ultimately, he meets with a doctor and is diagnosed with early onset Alzheime's.
The daughter, Sara Professional (SP), becomes the Financial Power of Attorney for her father, JP. Along with her mother, SP files a motion with the courts to hold JP's bank, Big Bank, responsible for the transactions. After all, the activity is significantly different than any previous activity on the accounts and JP was declared mentally incompetent after the transactions were brought to the court's attention.
What is the likely outcome?