I recently filed a fraudulent claim with my bank concerning negotiation of my check payable to my satellite provider. The check has no endorsement other than from Bank X, the depository bank. The payee never received or deposited this check. My bank denied my fraud claim stating "Bank X-payee received funds therefore this is not a valid fraud claim. How should I proceed now as my check was negotiated by somebody other than the intended payee?
A check that is deposited at Bank X without an endorsement from the payee is covered with a warranty from Bank X that the payee received credit for the check. The source of that warranty is section 4-205 of your state's Uniform Commercial Code. If your satellite provider will examine a copy of the check and provide an affidavit that the payee did not receive credit for the check at Bank X, you can take that affidavit to your bank and ask that you be reimbursed for the amount of the check.
Your bank then will make a warranty claim against Bank X. If Bank X can prove that the payee received credit, everything will come back to you and the satellite provider will have to update its records. If Bank X determines that the satellite provider did not receive credit, Bank X takes the loss and reimburses your bank. If your bank has not already given you back the funds, it should do so at that time. None of this machinery can start moving, however, without the affidavit from the payee of the check.
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A check that is deposited at Bank X without an endorsement from the 