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The Typical Forged Check Case

The typical case involves the bookkeeper or accountant for a small business who is responsible for the entire payroll, accounting and related functions of the business.

The owner is focused on running the operations or marketing of the business and leaves all of the bookkeeping and accounting work to a single person. This person at some point figures out that no one is supervising his or her activities and that no one is reviewing the bank statements.

The bookkeeper begins issuing checks to pay gambling or other debts and forging the owner’s signature on the checks. The checks are paid in due course by the bank and the embezzlement goes on for months or years.

At some point the embezzlement is uncovered and the business makes a claim on its bank for paying the forged checks. The bank declines to reimburse the business claiming that the business was negligent in hiring and supervising the dishonest bookkeeper or accountant.

The next step usually litigation between the bank and the customer over the responsibility for the loss.

 

You need me as your Forged Check Case Expert Witness

I am an Expert Witness Specializing in Banking Matters Involving Forged and Counterfeit Checks, Funds Transfers, Deposit Accounts, and Teller and Branch Operations.  I served as the in-house deposit and operations counsel at two “top 20” banks. Previously, I held similar positions at several multi-billion-dollar asset-size banks, including service as the general counsel of two national banks. Overall, I have a total of 43 years of experience in banking – 36 years as an in-house counsel for banks and another 7 years as a bank internal auditor and as an examiner for the New Jersey Department of Banking.

Prior Significant Engagements

  • Law Firm – Counterfeit Official Check (Draft) Case
    Facts: The plaintiff law firm received from a new client a foreign draft for a large amount payable to the plaintiff law firm purporting to be drawn on a foreign bank holding company in England.   The draft on its face claimed to be an “official check” of the foreign company.  The client directed the plaintiff ...
  • Law Firm – Counterfeit Foreign Cashier’s Check Case
    Facts:  The plaintiff law firm received from a new client what purported to be a cashier’s check drawn on a Canadian bank.   The foreign cashier’s check on its face claimed to be “payable through” a U.S. affiliate bank of the Canadian bank.  The U.S. affiliate bank listed on the face of the check did not ...
  • Crooked Bookkeeper Case
    Facts:  The plaintiff was a not-for-profit organization located in Providence, Rhode Island.  Plaintiff maintained its checking account a large regional bank in New England.  Over a three-year period, the plaintiff’s bookkeeper (an independent contractor) forged the signature of the president of the organization on a series of checks totaling some $400,000.  The bookkeeper cashed the ...
  • Dishonest Employee – Unauthorized Signature on Checks Case
    Facts:  The plaintiff small business in Pennsylvania hired a new chief accounting officer.  The officer was added as an additional signer on the plaintiff’s checking account at the defendant bank.  The owners of the business subsequently learned that the individual was stealing funds from the business.  The owners then removed the individual as a signer ...
  • Crooked Bookkeeper Case
    Facts: The plaintiff was a not-for-profit organization located in Providence, Rhode Island.  Plaintiff maintained its checking account a large regional bank in New England.  Over a three-year period, the plaintiff’s bookkeeper (an independent contractor) forged the signature of the president of the organization on a series of checks totaling some $400,000.  The bookkeeper cashed the ...
  • Dishonest Employee – Unauthorized Signature on Checks Case
    Facts: The plaintiff small business in Pennsylvania hired a new chief accounting officer.  The officer was added as an additional signer on the plaintiff’s checking account at the defendant bank.  The owners of the business subsequently learned that the individual was stealing funds from the business.  The owners then removed the individual as a signer ...
  • Forged Maker (Drawer) Signature Case
    Facts: The plaintiff corporation originally opened a checking account at a branch office of a major regional bank located in Montgomery County, Pennsylvania. The signature card for the account initially named three individuals as the persons authorized to sign checks on behalf of the plaintiff. The plaintiff subsequently removed two of the three original signers ...
  • Crooked Bookkeeper – Forged Check Case
    Facts: The bookkeeper of a small corporation located in Somerset County, New Jersey embezzled a substantial sum of money by means of three different fraudulent schemes. The first scheme involved creating a series of checks drawn on the corporation’s business checking account at a large regional bank. He made the checks payable to himself or ...
  • Crooked Bookkeeper – Forged Drawer’s Signature
    Negligence of the Bank in Reviewing Signatures on Checks Case Facts: A dishonest employee of a law firm forged the signature of one of the partners on a series of checks drawn on the firm’s attorney trust account at a community bank located in Newark, New Jersey. Subject of Expert Report: Whether or not the community bank ...