While the head of the department at the charlotte observer

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Reference no: EM131434336

While the head of the department at the Charlotte Observer, Oren Johnson submitted phony invoices from Graphic Image, Inc. (GII). Knight Publishing Co., the owner of the Observer, would issue checks in payment payable to GII. Johnson and others used this scheme to steal from the newspaper. They had the checks indorsed by Graphic Color Prep, a business they owned, and deposited in its account. About fifty-five checks were deposited this way for a total of $1.5 million. When Knight found out, it sued its bank for paying the checks on alledgedly improper indorsements. May Knight recover?

Reference no: EM131434336

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