Posted by Pat on 12/08/03

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I recently finished going through the the company's books
for a friend of mine. I was working from copies of bank
records from the company and the company book-keeper (her
personal account) and copies of the checks received by the
company.
In all, there's about $250,000 that was diverted to the
book-keeper's personal account either by phone transfer or
by depositing checks partically into her account and
partically into the company account, withdrawn by her as
cash, checks written for personal expenses, along with
$35,000 in checks that she endorced, but don't show up
deposited into either account.All oof these checks were
made out to the company itself.
The Hancock County (Ohio) prosecuter delined to take any
action, (he refused to even look at the evidence)
so my question is this:
How liable is the bank in this? The checks were made out to
the company, but endorsed by the book keeper. Company
checks were deposited directly into her account. If she
deposited only part of a check into the company account,
she'd take the rest as cash or deposit the remainder into
her personal checking account. She made frequent phone
transfers from the company account into her own.
I thought banking laws prevented these kinds of
transactions! **She also managed to get credit cards and
loans in the company name!** (don't even get me started
about the mess the taxes are in!)

The diversion of funds forced the company to close. There
seems to be no way to recover any of the money from the
book-keeper (I couldn't trace the hugh amounts of cash she
took and a PI couldn't find evidence of hidden assets), is
there any recourse with the bank?

Sm. business closed due to embezzellment. Help!, 12/08/03, by Pat.

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