We have a customer that wrote a check to a phony real estate company back in May 2005. They obviously did not know at the time the company wasn't legitimate and only recently determined the company can't be found and they are out their $10,000. In looking at the back of the check, it was endorsed as "Deposit only". Any way to make a claim against the depositing bank for an improper endorsement? I don't know how else to help our customer.
Thanks.

The depository bank warranted that it credited the check to the account of the payee. That's all. And an endorsement isn't required under the UCC in order to deposit a check. I think you're tilting at windmills on this.

Thanks John. That's what I was afraid of.