Is a bank liable for cashing checks made out to a corporation, then cashed by an employee of the corporation with a personal account at that bank?
If the employee in question diverts the funds from those checks to his or her own use, the bank can be liable on a theory that the bank assisted in the conversion of the funds (a legal term for a form of theft). In order for the bank to incur liability, there would have to be a dispute over the funds.
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If the employee in question diverts the funds from those checks to his or her own use, the bank can be liable on a theory that the bank assisted in the conversion of the funds (a legal term for a form of theft). In order for the bank to incur liability, there would have to be a dispute over the funds.
