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  1. #1
    Join Date
    Oct 2009
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    3

    Default Management Company Deposited Checks Made Out to Our Company in Their Bank

    My question involves a banking matter in the State of: California

    I apologize in advance as this is a long one.

    My wife is a physician and very recently (in the last couple of weeks or so) the medical management company she has contracted with to provide various services (billing, collections etc.), deposited checks made out to her company worth a total of over $10,000.00 into their own bank account without our endorsement or authorization. We have always put her checks into her business account at her bank and then paid them.

    We spoke to their bank manager two days ago and she said she would look into it and sounded quiet nervous. We also said we wanted her to take a look and see if this has happened before since we are now fairly certain that it has happened before.

    She called back today and said that she had talked to the party responsible and that this person had said we had worked everything out. This is simply not true as we have not worked anything out with the management company and are obviously quite angry with them.

    When queried, the bank manager said she could do nothing further unless we supply her with the date(s) that our checks were deposited into her bank. Obviously we can't do that as the management company has no desire to tell us that information. She also said that to look back and see if this has happened before, she would need to know the all the past deposit dates and check amounts. This is completely ridiculous since how are we supposed to provide any of this information if we have been defrauded? If we never saw the checks to begin with, how would we know this?

    My question is: What is the bank's responsibility in all this and what should we do now? How do we proceed since it looks like their bank is stonewalling us?

  2. #2
    Join Date
    Apr 2009
    Location
    Inland Empire
    Posts
    1,410

    Default Re: Management Company Deposited Checks Made Out to Our Company in Their Bank

    Quote Quoting Jellypop
    View Post
    My question involves a banking matter in the State of: California

    I apologize in advance as this is a long one.

    My wife is a physician and very recently (in the last couple of weeks or so) the medical management company she has contracted with to provide various services (billing, collections etc.), deposited checks made out to her company worth a total of over $10,000.00 into their own bank account without our endorsement or authorization. We have always put her checks into her business account at her bank and then paid them.

    We spoke to their bank manager two days ago and she said she would look into it and sounded quiet nervous. We also said we wanted her to take a look and see if this has happened before since we are now fairly certain that it has happened before.

    She called back today and said that she had talked to the party responsible and that this person had said we had worked everything out. This is simply not true as we have not worked anything out with the management company and are obviously quite angry with them.

    When queried, the bank manager said she could do nothing further unless we supply her with the date(s) that our checks were deposited into her bank. Obviously we can't do that as the management company has no desire to tell us that information. She also said that to look back and see if this has happened before, she would need to know the all the past deposit dates and check amounts. This is completely ridiculous since how are we supposed to provide any of this information if we have been defrauded? If we never saw the checks to begin with, how would we know this?

    My question is: What is the bank's responsibility in all this and what should we do now? How do we proceed since it looks like their bank is stonewalling us?
    This is called a conversion. You need to notify the makers of the checks that have been intercepted and inform then that you did not receive benefit of the checks. The maker needs to file a forged endorsement claim with their bank. The maker of the check(s) will get an affadavit to sign and you will also need to sign. The maker of the check(s) will get credited by their bank when the depository bank refunds them.

    This will not get resolved over night. In the mean time I might suggest a new management company.

  3. #3
    Join Date
    Oct 2009
    Posts
    3

    Default Re: Management Company Deposited Checks Made Out to Our Company in Their Bank

    Thank you very much for your reply. We will proceed accordingly.

    Our ultimate concern is that they were easily able to deposit our checks into their account without any questions asked, which leads us to believe (with good reason) that this is not the first time. We want to know how to go about seeing the microfilms of their deposits going back 7-10 years.

    We were told by our bank that we can get a court order and subpoena their records. Is this true and what other, if any, options do we have?

    Also, who is liable, if they have indeed been cashing our checks?

    Thanks

  4. #4
    Join Date
    Apr 2009
    Location
    Inland Empire
    Posts
    1,410

    Default Re: Management Company Deposited Checks Made Out to Our Company in Their Bank

    Quote Quoting Jellypop
    View Post
    Thank you very much for your reply. We will proceed accordingly.

    Our ultimate concern is that they were easily able to deposit our checks into their account without any questions asked, which leads us to believe (with good reason) that this is not the first time. We want to know how to go about seeing the microfilms of their deposits going back 7-10 years.

    We were told by our bank that we can get a court order and subpoena their records. Is this true and what other, if any, options do we have?

    Also, who is liable, if they have indeed been cashing our checks?

    Thanks
    Does the management company have control, or are they authorized to endorse your checks?

    Who handles your accounts receivables?

  5. #5
    Join Date
    Mar 2009
    Location
    Key West, FL
    Posts
    2,350

    Default Re: Management Company Deposited Checks Made Out to Our Company in Their Bank

    I would terminate the management company if at all possible. What they have done is unethical and illegal unless your management agreement permits thier actions, which I would doubt. This is forgery and grand theft, plain and simple.

    I would go to the office of the state attorney or district attorney. They usually have check squads. File a criminal complaint for grand theft and fraud.
    The police can get the records a lot faster than you can.

    Talk to an attorney. You might want to commence a civil action, but if the police and state attorney will handle it, that is the way to go and sue after the cops get done with them.

    If the state will not help you, then you might want to commence a civil action. During discovery you can get all the records.

  6. #6
    Join Date
    Oct 2009
    Posts
    3

    Default Re: Management Company Deposited Checks Made Out to Our Company in Their Bank

    The management company does not have control and is definitely Not authorized to endorse our checks. Since they do the all the billing and collections, they receive all the checks which they then (supposedly) give to us, and they handle our accounts receivable. We in turn, pay them for services rendered.

    They have in the past asked us to open an account with their bank and give them a stamp, and we said no, we like our bank. We thought nothing of it at the time, but know we know why they wanted to do so.

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