Management has been sending checks to "America"; they are endorsed by FIA Card Services, but they have been recording them as "American" for American Pool Supply, Inc. on our profit and loss statement, when in fact they have gone for credit card payments for one person, personally. Now that we have discovered this, due to the extreme use of "chemicals" for the pools on our profit and loss statement, do we go to the bank, FIA or just to the management?
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Your bank is the farthest removed from the fraud and the least likely to be liable to anyone for paying checks that would appear to have been legitimately endorsed. The card issuer is a subsidiary or affiliate of a bank with "America" in its name. The card issuer may have been in a position to note that condo association checks were being used for personal credit card bills. Tthe dollar amounts and frequency may have something to do with their ability to pick it up as unusual, given the huge volumes of payments they receive every day.
The individual who benefited from those payments ought to be liable for the fraud and/or the individual who approved the bills for payment or signed the checks. The condo association needs to talk to an attorney about taking legal action against the individual who stole from the association. It also should talk with an accountant or other professional who can help set up good strong controls to prevent any one individual from having the ability to do this to the association again.
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Your bank is the farthest removed from the fraud and the least likely to be liable to anyone for paying checks that would appear to have been legitimately endorsed. The card issuer is a subsidiary or affiliate of a bank with "America" in its name. The card issuer may have been in a position to note that condo association checks were being used for personal credit card bills. Tthe dollar amounts and frequency may have something to do with their ability to pick it up as unusual, given the huge volumes of payments they receive every day.
The individual who benefited from those payments ought to be liable for the fraud and/or the individual who approved the bills for payment or signed the checks. The condo association needs to talk to an attorney about taking legal action against the individual who stole from the association. It also should talk with an accountant or other professional who can help set up good strong controls to prevent any one individual from having the ability to do this to the association again.