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The Typical Theft of Checks Payable to Employer Case

The typical case involves a dishonest employee who is responsible in some manner for receiving and processing of checks payable to the employer. 

The embezzlement begins by the employee first opening an account a bank in the name of a business that is substantially similar to the name of the employer.  For example, if the employer is the Acme Widget Corporation, the account may be opened as “Jane Doe trading as Acme Widgets.” 

The employee then steals checks payable to the employer, endorses the checks in the employer’s name (or in the name of the employee’s similar company) and deposits the checks into the account owned by the employee. 

The employee then marks the employer’s records to show the receivable represented by the check as paid and converts the proceeds of the stolen check to his or her own use. 

At some point, the misappropriation is discovered and the employer makes a claim against the bank for accepting the checks for deposit with the forged endorsements. 

The bank declines to reimburse the employer for the stolen checks and litigation ensues.

You need me as your Theft of Checks Payable 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

  • Dishonest Accountant – Stolen Checks Case
    Facts: The plaintiff owned and operated a large environmental services company in Delaware. Unknown to the plaintiff, the plaintiff’s accountant opened an account in the company’s name in a bank in New Jersey. The bank in New Jersey was supplied with appropriate account opening documents and other evidence of the accountant to act. The accountant ...
  • Forged Endorsement by Medical Billing Company
    Facts: The plaintiff corporation operated a medical care facility. It retained the services of a medical billing corporation to process and send invoices to insurance carriers and to receive and process checks remitted by the insurance carriers to pay for the services. The sole shareholder of the medical billing corporation initiated a scheme to misappropriate ...
  • Dishonest Office Manager – Forged Endorsement Case
    Facts:  The plaintiff was a physician with a large medical practice in Maryland who maintained a business checking account at a local community bank.  The physician gave the bank a letter authorizing his office manager to cash checks payable to the physician from time to time to provide “walking around money” for the physician.  Over ...
  • Corporations with Substantially Similar Names – Unauthorized Endorsement Case
    Facts:  Two corporations with substantially similar names maintained checking accounts at the same community bank.  The spouse of the owner of one corporation worked for the second corporation.  Over an 18 month period, the spouse misappropriated checks payable to her employer and deposited the checks into the account of the other corporation owned by her ...
  • Corporations with Substantially Similar Names: Unauthorized Endorsement Case
    Facts: Two corporations with substantially similar names maintained checking accounts at the same community bank. The spouse of the owner of one corporation worked for the second corporation. Over an 18 month period, the spouse misappropriated checks payable to her employer and deposited the checks into the account of the other corporation owned by her ...
  • Negligent Account Opening Case
    Facts: The plaintiff was a country club engaged in the selling of new country club memberships and resort homes. The manager of the country club entered into an agreement with a local real estate agent to misappropriate funds resulting from the sale of new memberships.  The real estate agent opened a “doing business as” account ...
  • Negligent Account Opening
    Facts: A national real estate management firm brought suit in the United States District Court for the District of New Jersey against a community bank claiming that its joint venture partner had wrongfully opened an account at the community bank in the name of the joint venture and had deposited into the account over forged ...