An employee stole checks from a customer and deposited them into an account he opened named Rocco Grasso Electrical Services. The checks were made out to Grasso Electric, is the bank responsible?
Whether or not the bank has any civil liability will depend on details involved in the account opening process, especially the procedures used by the bank for verifying the identity of its customer. The similarity of the payee name to the account title tends to work in the bank's favor.
The intended payee of the checks can file a claim with the checks' issuers that the payee's name was forged. The check issuers can then initiate a claim against their banks, which will file a claim with the bank that took the check for deposit. In that round-about way, the depositary bank should ultimately be responsible for the amount of the checks fraudulently deposited.
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Whether or not the bank has any civil liability will depend on details involved in the account opening process, especially the procedures used by the bank for verifying the identity of its customer. The similarity of the 