Forgery Denied Because of Customer's Presence

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Question:

We had a customer submit a claim for $3,500 in forged checks. The drive-up tellers saw our customer in a car with the forger on many occasions during the time these were presented. The forger also lived with our customer for a period of time. The checks claimed are not sequential so he may have been taking a check here and a check there, if they were actually stolen. Our customer is in jail now for an unrelated matter. The forger stole his car and was arrested in another state. Would this apparent relationship provide reasons to deny any claims of the forgery?

Answer:

I'll first suggest you consult with counsel on this.

The one real question you have here is whether your customer was complicit in, or benefited from, the alleged forgeries. I believe that, if you are able to prove complicity or benefit, you're justified in not paying the claim.

Your counsel will be able to advise you on how best to proceed.

First published on BankersOnline.com 6/21/04