Presenting and Passing Non Sufficient Funds Checks Constitutes Fraud
Carlo Cellai, Esq. represented a bank where a bank depositor and former lawyer deposited checks from a different bank into his bank account. Before the checks had a chance to bounce, the depositor withdrew funds from the empty account, the checks bounced and caused the bank a loss.
In laying the groundwork for a fraud defense to dischargeability in bankruptcy, Carlo Cellai, Esq. prosecuted the case on behalf of the bank on the ground that the depositors conduct amount to fraud.
The Judge agreed with Attorney Cellai’s position on behalf of the bank and ruled that the depositor had perpetrated a fraud on the bank. As a result of the creative legal theory, Attorney Cellai set the ground work for a dischargeability claim against the depositor had the depositor filed bankruptcy.
Massachusetts Lawyers Weekly