Bank fraud can lead to criminal charges for a person or company in Indiana. Wire transfer fraud is one form of bank fraud, and it is a federal criminal offense. Wire transfer fraud can also result in civil lawsuits, both against the person who is perceived as responsible and the company he or she owns or works for.
KeyBank is claiming that a payroll processing company made multiple fraudulent wire transfers, The Goshen News reports. The lawsuit claims both fraud and breach of contract, and that the company that allegedly made the transfers is insolvent. In addition to the lawsuit against the company, KeyBank is suing the CEO, stating that he directed transfers from two of the company’s subsidiaries’ bank accounts into the company’s accounts with KeyBank, then directed KeyBank to issue dozens more transfers to entities through other financial institutions.
Due to insufficient funds, the subsidiaries’ bank stopped the checks. The lack of funds left the wire transfers of over $200 million uncovered, according to the lawsuit. The result has been a shortfall of around $122 million for KeyBank. That institution is also seeking a court order requiring three of the financial institutions that received transfers to recover disbursed funds and hold money from the transfers.
The outcome of wire transfer fraud may be actual damages, punitive damages, fines and prison time. People and institutions facing fraud charges and litigation need a strong defense, and they often seek representation from an attorney with knowledge and experience in this area of law.