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#1377220 - 04/20/10 04:03 PM Concerns with opening deposits
nemsi Offline
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Joined: Nov 2005
Posts: 383
During routine account monitoring I noticed 3 personal accounts recently opened for the same individual- each account having a different POD. The opening deposit for all three accounts was one single "large" check payable to a trust with the trustee's name listed on the payee line- The Mickey A Mouse Trust Account, Minnie Mouse Trustee. Minnie Mouse endorsed the check "Mickey A Mouse Trust, Minnie Mouse Trustee, under that endorsement she endorsed the check again as Minnie Mouse. The check was then deposited into the 3 personal accounts in her name. I don't think this passes the smell check and the large check should have been deposited into an account belonging to the trust- then as trustee she could have issued checks. If you saw this activity at your FI would you be concerned?

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#1377254 - 04/20/10 04:26 PM Re: Concerns with opening deposits nemsi
madukes Offline
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madukes
Joined: Jul 2009
Posts: 1,448
Flyers Country
We recently went through the same thing. We made the trustee provide us with a copy of the trust agreement showing their authority. We then made them open a trust account and transferred the funds to that account. A copy of the trust agreement was filmed/imaged behind the signature card for both accounts.

Of course, the individual had already written checks out on the personal account, so he then transferred the funds back to the personal account (via a starter check written payable to himself). It was not pretty and it took us probably about a week to get all the paperwork that we felt we needed.
Of course, I would be suspicious of the need for 3 different acocunts.

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#1377635 - 04/20/10 08:57 PM Re: Concerns with opening deposits madukes
nemsi Offline
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Joined: Nov 2005
Posts: 383
Thanks Madukes. I'm just not sure what we're going to do about this mess. The 3 accounts have different POD- one for each adult child. The branch has contacted the customer and told her that we eed a copy of the trust etc.- not sure we'll ever get that.

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#1377647 - 04/20/10 09:10 PM Re: Concerns with opening deposits nemsi
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 80,393
Galveston, TX
You could close the accounts and cut one check back to the trust and see if she cooperates to re-open the accounts. It is better than taking a loss on the whole amount when the beneficiaries of trust realize you converted the funds for her.
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#1377656 - 04/20/10 09:27 PM Re: Concerns with opening deposits rlcarey
nemsi Offline
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Joined: Nov 2005
Posts: 383
Thanks Randy. I sure was glad to see your response. That's exactly what I've told the branch we should do. There's just something not on the up and up with this customer and a significant amount of money is involved.

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#1378082 - 04/21/10 03:26 PM Re: Concerns with opening deposits nemsi
Georgia Plum
Unregistered

Could the reason for three accounts with different PODs be to secure appropriate FDIC insurance coverage?

Agree that they should not have used check payable to trust for this. Should open trust, then show checks issued.

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#1378656 - 04/21/10 08:51 PM Re: Concerns with opening deposits rlcarey
madukes Offline
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madukes
Joined: Jul 2009
Posts: 1,448
Flyers Country
Originally Posted By: rlcarey
You could close the accounts and cut one check back to the trust and see if she cooperates to re-open the accounts. It is better than taking a loss on the whole amount when the beneficiaries of trust realize you converted the funds for her.


FYI, we had "locked up" the account so that none of the funds were paid out until we received the appropriate paperwork. Any checks that were presented were returned for "refer to maker"

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#1378709 - 04/21/10 09:15 PM Re: Concerns with opening deposits madukes
nemsi Offline
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Joined: Nov 2005
Posts: 383
Thanks for your help. The branch has contacted the customer and asked her to drop by a copy of the trust agreement- i say we will never get it. The customer was not happy about providing us with a copy. The 3 PODs are children- between the ages of 45 and 50. I say we block the account, send the customer a letter and tell her that we will be closing the accounts as of ----- and issuing a check to the Trust.
I think there are flashing signs outside our branches that say "Come on in, if no other bank will do it, we will!"

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