A check was made payable to the bank for the mortgage. The loan officer deposited it in his own account by signing the back. It was for $81,000. The bank gave him $21,000 cash and the remaining was put in his account. Is there liablity to the bank?
If you are asking whether the bank is liable for allowing the transaction, it is. If the check was payable to the bank for $81,000, the transaction as you have described it, should have waved all sorts of red flags for the bank.
Hopefully, you are able to convince the bank that it has a significant legal problem on its hands.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
If you are asking whether the bank is liable for allowing the transaction, it is. If the check was payable to the bank for $81,000, the transaction as you have described it, should have waved all sorts of red flags for the bank.
Hopefully, you are able to convince the bank that it has a significant legal problem on its hands.
