Tim was a bookkeeper for a small-town clothing retail store where his responsibilities included preparing employee payroll checks as well as preparing checks to pay vendors for the purchase of inventory. As the bookkeeper, Tim had the authority to prepare the checks, but was not authorized to sign the checks, as each vendor check required the signature of both partners of the company. During the entirety of 2020, each month, Tim would draft checks in the amount of $10,000 for a fictional vendor he had created and forge the endorsement of both partners. He would then present the checks to ABC Bank in an account he had set up for the fictional vendor. Each month, the bank deposited the full amount into the fictional company’s account, which Tim would then transfer into his own personal account at the same bank. In 2021, Time continued this scheme each month, but became careless and only began putting one of the partners names on each check that was deposited. Finally, deciding he was not content with his current scheme, Tim decided, that in addition to his monthly check that he would take a check that had been issued to a legitimate vendor in the amount of $50,000 and endorse the check to himself personally. It was only after this final check was discovered that Tim’s pattern of deception was discovered by the employer and reported to the bank. A. Describe the liability for the 2020 checks for each party
B. Describe the liability for the 2021 checks for each party
C. Describe the liability for the final 2021 check for the vendor, the bank, the retail store and Tim