Representative Image of an elderly woman standing before a court, alleging financial wrongdoing against a major bank (AI-generated image)
Lawsuit alleges unauthorised transfers from a family trust
Elizabeth Madden, who was 81 when she filed her lawsuit in January 2026, alleges that Northern Trust failed to protect her family’s roughly $20 million legacy trust from unauthorised transactions by a former employee. Madden is seeking at least $35 million in damages from Northern Trust, accusing the bank of failing to prevent the alleged misconduct. He pleaded not guilty in July 2026 to eight counts of bank fraud and one count of aggravated identity theft. Her grandfather founded Security Trust Company, a Miami bank acquired by Northern Trust in 1971. Madden filed her lawsuit against The Northern Trust Company on January 28, 2026, in the US District Court for the Southern District of Florida. The complaint identifies Walters as a former vice president and senior fiduciary relationship adviser who worked at Northern Trust from 2000 to 2024. The lawsuit accuses Northern Trust of failing to maintain adequate safeguards over trust payments and alleges that the bank collected more than $1 million in fees while the misconduct continued. The firm’s announcement of the lawsuit identifies the damages sought as at least $35 million. The court docket records a clerk’s entry of default on December 29, 2025, followed by a final default judgment in Northern Trust’s favour. Published reporting states that a federal judge entered the judgment in February 2026, awarding the bank $75,001.
Her complaint says Christopher Walters, a former vice president and senior fiduciary relationship adviser at the bank, used money from the account to pay credit-card debts and expenses associated with a fitness gym he operated. Northern Trust has said it was also a victim of Walters’ alleged conduct and disputes Madden’s claims about its responsibility. The family’s connection to the institution helps explain why Madden continued to entrust her assets to it for decades, according to published reporting. Walters transferred money from Madden’s trust without authorisation and directed payments towards credit-card accounts under his control, according to the complaint. Madden’s lawyer, Lee Stapleton, told the Miami Herald that Northern Trust had provided at least three different estimates of the amount allegedly taken. In its case against Walters, Northern Trust referred to the affected client as a “Client-Victim” rather than naming Madden.
Walters is not a defendant in her lawsuit against the bank, but he faces separate civil proceedings brought by Northern Trust and federal criminal charges. Madden’s family had a longstanding relationship with Northern Trust. The alleged transactions continued over more than a decade. Madden’s lawyers at Carlton Fields describe the case as an elder financial abuse claim involving alleged unauthorised transfers from a legacy trust. Northern Trust disputes Madden’s account of its role. The bank has maintained that it was a victim of Walters’ alleged fraud, arguing that an employer cannot be expected to be immune to dishonest employees. The competing positions remain part of the civil dispute, rather than established findings that Northern Trust itself stole money from Madden. The bank alleged that Walters repeatedly lied to a client while acting outside his authority and abusing his position. The case proceeded after Walters failed to respond. A default judgment can be entered when a defendant fails to respond to a lawsuit. The judgment in Northern Trust’s case against Walters does not resolve Madden’s separate claims against the bank or establish that Northern Trust is liable for her alleged losses.
Madden transferred her account to Grove Bank & Trust in Miami in early 2025. Walters was terminated in autumn 2024. Northern Trust subsequently filed its own civil lawsuit against him in federal court in August 2025.
The alleged misconduct came to light in connection with the transition, according to reporting by the Miami Herald. The timing of the discovery has also been discussed by Madden’s lawyer, so it should not be treated as an independently established finding about when Northern Trust first learned of the alleged transactions. That case, The Northern Trust Company v. Walters, is separate from Madden’s lawsuit against the bank.