Legal Question in Banking Law in Wisconsin

Individual cashing checks for organization at local retailer.

Hello,

I work for a local small pharmacy, and one of our employees is also the head of a local church. This employee regularly cashes checks made out to his church through the store, but he signs his personal name, and these are the checks for ''tithing''. He recieves the cash, and that is that.

Is this legal for him to be doing? Many checks come back NSF and I am concerned for the store, and my employment, not to mention legal standing, if anything illegal is happening. I have notified my bosses that I do not feel comfortable with this, as I am not positive on the legalities involved.

My boss said they will speak with their lawyers in the future regarding this, but I would like to have some peace of mind myself.

Thank you very much.


Asked on 5/03/06, 8:31 pm

1 Answer from Attorneys
David Anderson Anderson Business Law LLC

Re: Individual cashing checks for organization at local retailer.

No. Checks made out to the church should be duly endorsed and deposited to the church's depository account, and not negotiated and cashed by the individual.

Based on your information as presented, it appears to be a clear case of embezzlement.

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Answered on 5/03/06, 9:40 pm


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