Construction Company Files Suit Against Bank
July 28, 2016 at 4:25 p.m.
C.R.I. Construction recently filed a lawsuit in Kosciusko Superior Court 1 against Farmers State Bank.
The suit results from the November arrest of Marvin Christopher Whitehead, 39. Whitehead was an employee of C.R.I. and admitted stealing more than $356,102 from the business by depositing business funds into a fake account at Farmers State Bank.
Whitehead opened an account at the bank in the business' name, deposited clients' payment checks and then had cashiers' checks made out to himself to cash.
According to the suit, the bank should be liable because no information provided by Whitehead was ever verified.
Farmers State Bank should have contacted the business owner, president, chief financial officer or other C.R.I. executive to verify Whitehead's financial authority, the suit alleges.
Also, Farmers State Bank never required Whitehead to submit a Banking Resolution for C.R.I. when he opened the account. Whitehead reportedly did submit some corporation documents, none of which documented his authorization to open financial accounts.
The bank also did not review state records relating to the company.
For the bank's "failure to exercise reasonable and ordinary care," C.R.I. is asking for the amount lost, interest, court costs and attorney fees. [[In-content Ad]]
C.R.I. Construction recently filed a lawsuit in Kosciusko Superior Court 1 against Farmers State Bank.
The suit results from the November arrest of Marvin Christopher Whitehead, 39. Whitehead was an employee of C.R.I. and admitted stealing more than $356,102 from the business by depositing business funds into a fake account at Farmers State Bank.
Whitehead opened an account at the bank in the business' name, deposited clients' payment checks and then had cashiers' checks made out to himself to cash.
According to the suit, the bank should be liable because no information provided by Whitehead was ever verified.
Farmers State Bank should have contacted the business owner, president, chief financial officer or other C.R.I. executive to verify Whitehead's financial authority, the suit alleges.
Also, Farmers State Bank never required Whitehead to submit a Banking Resolution for C.R.I. when he opened the account. Whitehead reportedly did submit some corporation documents, none of which documented his authorization to open financial accounts.
The bank also did not review state records relating to the company.
For the bank's "failure to exercise reasonable and ordinary care," C.R.I. is asking for the amount lost, interest, court costs and attorney fees. [[In-content Ad]]