Auto Sision, Inc. v. Wells Fargo

375 F.Supp.3d 627 (2019)

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Nature of the Case

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Facts

P is a corporation that engages in the business of automotive body repair. Ps allege that non-party Albert Buccini founded an automotive body repair business, which he owned and operated until 1997, at which time he pled guilty to two counts of federal income tax evasion. Barbara Szeliga was allegedly employed as the business's bookkeeper. When this business filed for bankruptcy, P purchased certain assets of the business out of the bankruptcy proceedings and entered into a five (5) year commercial lease of its premises for P's operation. P employed Barbara Szeliga as its bookkeeper allegedly based on Buccini's urging. Ps allege that Buccini convinced them to hire Szeliga as bookkeeper as part of a scheme to misappropriate Ps' funds. Szeliga was solely responsible for the handling of and accounting for P's payments from automobile insurers. Almost immediately Szeliga began stealing and/or misappropriating P's assets with Buccini's knowledge and aid, including stealing P's accounts receivable checks from insurers payable to P. Szeliga indorsed the stolen checks in P's name and deposited these checks into a Wells Fargo bank account for a company named United Check Cashing, a check-cashing franchise, which was co-owned by Buccini, Buccini's son, and Szeliga. United went out of business, but Szeliga and Buccini kept on stealing from Ps. The only money deposited into United's unlawful bank accounts was P's misappropriated assets. Ps alleged that D knew that United had closed its operations. Ps eventually caught Szeliga in the act. Ps allege that D violated 13 Pa C.S.A. § 3420 'by obtaining payment with respect to the aforementioned instruments to a person not entitled to enforce the instrument or receive payment. Ps allege that Wells Fargo violated 13 Pa. C.S.A. § 3406 by failing to use ordinary care when it stopped requiring the United account to obtain third-party audits. D moved to dismiss.