My elderly dad issued a cashier's check for a high amount for the purchase of a home. He was conned into believing that a certain person in his life was going to facilitate the purchase of said home. The cashier's check was 7 figures and made out to "Jim Smith [my dad] or Mary Doe" (not their real names) and was signed on the bottom by Mary Doe.
Mary Doe took the check and attempted to cash it for her own benefit, but was denied by the banks. The authorities were notified. The checks ended up being cashed by someone unrelated to my dad or Mary Doe, in another state thousands of miles away. Neither was in that state when the checks were presented/paid. Police have determined the signatures are forgeries, and any ID that would have been presented to the bank would have been fake. There is no indication that IDs were checked. This debacle has resulted in arrests, including Mary Doe who tried to defraud my dad in the first place.
There is more to the story but these are the material facts. My dad has filed a fraud report with the issuing bank. They have 10 days to respond. Do you think the bank is legally obligated to resolve this in our favor?
Yes. Unless the bank that cashed the three-party check has a business relationship with one of the two payees the bank is laible to the remitter--especially since the remitter was oner of the payees. The bank has insurance--becasue they are required to have insurance. So, if the bank fails to respond--or refuses to make good--you and your dad would do well to hire an experienced banking lawyer to contact the bank lawyers and help you collect against the bank. You do not need to hire a banking lawyer in your local community--and in fact you will probably have difficulty finding one willing to go against the bank. You can search for other very experienced banking lawyers here on AVVO using the Find a Lawyer tab.
This is a very troubling situation, and certainly will require your dad and perhaps you sitting down with a qualified attorney to go over the details, analyze the situation, and come up with a strategy to get this resolved successfully. The question of who will ultimately be responsible financially for the fraud is not decided until it's decided, even though it's plain from your summary that your dad should not ultimately be that person. Time with such matters is always a factor, so act wisely in contacting an attorney, but with some measure of urgency. (We aren't allowed to solicit cases here, so you will need to reach out directly to an attorney to go forward.)
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