Customer's Fun Leads to Forgery & Fraud

Question:

My bank has a client that had a "voluntary social companion" steal and forge three checks. The client admitted he allowed her into his home many times prior to this incident and that they had a physical relationship. In speaking with the local police, he is known for engaging in the "oldest profession" (I am not talking about baking bread). The checks were passed at three local courts for criminal fines. The client feels that we should be responsible for his loss. What do you think?

Answer:

Wasn't this scenario featured on a reality show just last week? Contact your institution's legal representative and consider these logistics.

If your institution actually lost money, you're a victim and a victim may file a crime report with the local law enforcement agency. You don't say if the customer completed your affidavit of forgery regarding any of the checks.

If your institution suspects that a crime was committed and suspects who committed it, you may file a report with your local law enforcement agency concerning the forgeries at your local courts. Each court is a victim (see above) and they will have to file reports, too.

Your customer's lifestyle and choice of companions is only your customer's choice. If your customer's choices are causing your institution problems, do you really want to keep this customer?

First published on BankersOnline.com 3/31/08