We have copies of several money orders that were made out to one of our locations. An employee marked through the location name and placed her name and deposited/cashed them. The bank should have been able to clearly identify fraud, but cashed them. This happened many times with the same bank. Who is responsible for payment of these money orders to my business? The bank clearly made a poor decision when continually cashing money orders that were made out to another entity and marked through and replaced with an individuals name.
As payee of an altered check, you can contact the remitters of those money orders with claims of non-payment. After all, if your company did not receive those payments, you were not paid.
The remitters will have rights to claim that the money orders were wrongfully paid by the banks on which they were drawn, and those banks will have rights to claim recovery from the bank that accepted the checks for deposit. There may be a defense against your initial claim, based on what appears to be your hiring of a dishonest employee. Consult an attorney to help you determine a course of action.
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