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  1. #1
    Join Date
    Mar 2010
    Posts
    2

    Default Liability from Bad Checks

    My question involves criminal law for the state of: MI

    My cousin was defrauded in a work at home scheme. He is new to the states (not a citizen) and got suckered into cashing fraudulent checks/money orders. He received the checks every few days with instructions to cash them, keep 10% as a service fee, and wire 90% to an account in the UK.

    The first check he received was in his name, and he cashed it at a cash checking business. He wired the 90% and kept 10% for himself. The second check he received he deposited into his bank account without withdrawing the money. The bank informed him soon after that the check was fraudulent and closed his account.

    The owner of the cash checking store was informed the first check was fake and is now demanding the entire amount back. My cousin has offered him the 10% he still has, but the owner has refused and has threatened to call the police.

    Is my cousin liable for the entire amount? What options does he have? Who should he contact to report the fraud, and will reporting it protect him in any way?

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Liability from Bad Checks

    Is my cousin liable for the entire amount?
    yep

    What options does he have?
    pay or be subject to whatever actions the check cashing store has available to them to attempt to recover their losses.

    Who should he contact to report the fraud, and will reporting it protect him in any way?
    reporting it might prevent him from being seen as this being a criminal act. It will not do anything to remove his liability for the money.






    since this was via the mail, probably the US postmaster generals office.

    He might also call his states attorney generals office too.

  3. #3
    Join Date
    Mar 2010
    Posts
    2

    Default Re: Liability from Bad Checks

    Thanks for the quick reply.

    What actions the does check cashing store have available to them?

  4. #4
    Join Date
    Mar 2009
    Location
    Key West, FL
    Posts
    2,350

    Default Re: Liability from Bad Checks

    You should check the law in your state, but generally this is a third party check and there is no criminal recourse. Any recourse is civil only. Your cousin did not write or issue the check. A check cashing business takes a risk cashing any third party check and that is a risk of their business.

    There was a fraud conducted on your cousin. He needs to go to the US attorney and report this. This scam is a federal crime as it is fraud on a US insured bank.

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