May 31, 2011; Source: Mainebiz.biz | The Maine Trial Lawyers Association is suing Bank of America for making it easy for an administrative assistant at the association to embezzle $166,000 over a four-year period. Apparently the bank allowed Bettysue Higgins, not a signatory, to establish online banking although she was unauthorized to do so, and to cash 220 forged checks made out to her or to “cash.” The suit charges breach of contract, breach of good faith and negligence. MTLA has already successfully sued Higgins for more than $170,000 but presumably that recompense may be hard to collect so it is now also going after the bank. Bank of America denies it is at fault and blames MTLA. It seems like there is plenty of blame to share – and where was the auditor in all of this? It will be interesting to see where this goes.—Ruth McCambridge
About The Author
Ruth is the founder and Editor Emerita of the Nonprofit Quarterly. Her background includes forty-five years of experience in nonprofits, primarily in organizations that mix grassroots community work with policy change. Beginning in the mid-1980s, Ruth spent a decade at the Boston Foundation, developing and implementing capacity building programs and advocating for grantmaking attention to constituent involvement.