Any time someone tries to open an account with a bank that's more than a reasonable distance away from their home or place of work, red flags should be waving. The obvious exception that comes to mind is a bank that's advertising abnormally high interest rates in a quest for deposits, but even in those cases, banks typically avoid accepting interstate deposits that could throw their host state deposit ratios off.
You've received good advice, Megaman. I'd be re-thinking any new accounts you've accepted from California businesses, it I were in your place.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8