This situation has only been brought to the attention of Compliance recently. Approximately 6 years ago a customer developed some serious health issues. A fundraiser was held and over $170,000 was raised. A cashier's check was purchased by the group who led the fundraiser. Unfortunately a proper account in the name of the foundation was never set up (branch error) and the individual benefiting has been drawing down on the check. The audit trail clearly shows residual cashiers checks payable to various medical establishments for treatment over time. The employee(s) who originally set this up at the branch are no longer there. There is a balance of approx. $15,000 left. Two questions:

1) Anyone see a SAR related offense?
2) Any ideas on what to do with the remainder of the funds?

Thanks all.

"My sword I give to him that shall succeed me in my pilgrimage, and my courage and skill to him that can get it." John Bunyan

So, it appears the money was used for its intended purpose, but it was done through a series of transactions where the payee exchanged cashiers checks for other cashiers checks payable to himself and his medical service providers?

Personally, I see no basis for a SAR.

As for the outstanding cashiers check in his name, if he:

* is alive, then it's still his money and
* if he has died it is an asset of his estate.

I'm missing something, right? This certainly wasn't done according to Hoyle, but the money was a gift and was not taxable. The people contributing the funds were not defrauded. Aside from the ineptitude of your dearly departed branch personnel, I'm not certain what is troubling you.

Is the checks payable to the customer or a non existant foundation?

Non existant foundation.

Oh, sugar! Do you know where those former employees live...never mind.

Is the individual still alive?

Now I see where you problem is.

IMHO I do not see a SAR for same reasons given above.(can you go back in time and beat the employees?)

If no one is claiming the money (yeah right) I would let it go abandoned to the state and let them worry about it. (I am clearly not an expert on this but just an opinion)

The individual is still alive and on occasion draws down on the remaining funds for medical treatment only. This clearly should not have been set up as it was. No doubt the employees dropped the ball on this. I don't necessarily see a SAR on this, but have concerns about what to do with the remaining funds. Thinking of either cutting a check to the individual in question or opening up the proper account.

“Chance favors only the mind that is prepared”. Louis Pasteur

I would try to open a proper account as the fund do not belong to him (a tech) but to the nonexistant foundation.

I'm going to start with the premise that the money belongs to the individual and it always has. Those who disagree will go in a different direction. Your former employees simply manufactured a control mechanism which would prohibit the individual from using the funds for anything other than their intended purpose.

I see the same choices you do:

* Make the check payable to him. If you want to be paternalistic, hold it at the branch convenient to him under dual control and finish the way you started.

* Open a free account in his name and put "Medical Expenses" on line two of the title and the free checks you are going to give him. Tell him your auditor will monitor the checks he writes, but I would not bother.

That's a binder twine and scotch tape solution if I've ever offered one, but your bank has already jumped over Niagara Falls, and you can't just say "stop" when you are within $15,000 of the bottom.

Put this is the SAR consideration pile...