CDG Acquisition, LLC (CDG) maintained a corporate bank deposit account with JP Morgan Chase Bank, N.A. (Chase). At some point during the relevant time period, CDG’s senior accountant, Angelo Kanaris, began writing fraudulent checks with CDG’s authorized signature stamp to CDG vendors. Kanaris wrote or stamped on the back of each fraudulent check the words “Dollar Bank Mobile Remote Deposit Only.” None of the fraudulent checks were indorsed on behalf of any payee, and Kanaris never signed the back of the checks on his or anyone else’s behalf. Kanaris had a personal bank account with Dollar Bank.

Dollar Bank accepted the fraudulent checks and credited Kanaris’s personal bank account despite the missing indorsements and the

“deposit only” stamp and despite the fact that the payee on the front of the check was an entity or individual other than Kanaris.

Furthermore, Chase paid the checks and charged them against CDG’s account upon presentment. CDG argues that because Kanaris did not have the authority to endorse the checks, Chase was liable as a matter of law for making payment on the checks, which were presented without any actual or purported signature. Should Dollar Bank be held liable for accepting the checks? Should Chase be liable for making payment? Or should Dollar Bank and Chase both be held liable? [CDG Acquisition v. Dollar Bank, No. 1:19CV1198