The Account Agreement Controls

A case by Designer Direct, Inc. against its depository bank p2019 WL 1002605 (N.D. IL, February 28, 2019) involved a depositor corporation that was defrauded by its trusted office manager. The corporation, Designer Direct, Inc. (“DD”) tried to impose liability for its losses on its depository bank, but was not successful.

DD had three authorized signatories on its checking account none of whom was involved in the fraud. The perpetrator of the fraud was its office manager, Kristian…