Consumer complaint received 2024-01-11
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Other transaction problem — 
Company: JPMORGAN CHASE & CO. (TX)

MY STORY We are claiming a refund of the full value of a XXXX {$14000.00} wire that was lost due to Chase Banks negligence and breach of duty to examine and evaluate the available evidence even after such evidence was brought to its attention. 
I was tricked into sending a regular legitimate business wire transfer to Chase Bank to an account that was controlled by unknown perpetrators of a fraud. When I discovered the fraud, I promptly notified Chase Bank who refused to take any action to stop or retrieve the fraudulent transfer. 
The issue in this complaint are : ( i ) The responsibility of careful investigation for correct disposition of funds by Banks when a WIRE FRAUD ( crime ) has been reported to them. Banks can not claim protection under UCC 4 and dispose of such matters without proper consideration and examination of the related evidence and original documents and discussing with the parties involved. 
( ii ) What is Banks reporting responsibility to Lawmen if the perpetrator of fraud or their associates approaches the bank for the funds which were fraudulently procured? 
( iii ) Why Chase should not be considered negligent when it had actual knowledge of the fraud and criminal activity from credible lawful sources before it disbursed funds, and yet failed to make any reviews or enquiries and released the to the fraudulent party anyway? 
( iv ) If Banks do not have protection against payment of a Fraudulent Check, how they can claim protection against payment of a Fraudulent Wire? 
We were victim of a WIRE FRAUD. The Originating Bank XXXX XXXX XXXX XXXX reported the FRAUD to the Receiving Bank XXXX Chase Bank ) well in time, while 100 % of funds were in control of the Receiving Bank. We also advised Chase of existence of a Police case and report to FBI. But Chase bank ignored all messages and communications and mostly stayed silent. In the end, without reference to the Originating Bank or to the Remitter, Chase disbursed the funds to the perpetrators of the Fraud or their associates, presented it to us a Fait Accompli and, of course, refused to accept any responsibility. 
The wire was sent by my bankXXXX XXXX XXXX ( Originating Bank ), and intended for my vendor, XXXX XXXX, XXXX on XX/XX/2023 through Chase Bank ( Receiving Bank ) for purchase of XXXX XXXX XXXX XXXX for export ( exhibit 1 ). Unknown persons had intercepted our communication with XXXX. These unknown persons pretended to be XXXX and sent us an XXXX mail with fraudulent wire instructions. 
We discovered the FRAUD very quickly. We contacted Chase bank on XX/XX/2023. We informed Chase that this wire was a result of wire fraud and criminal activity, and these funds be frozen and returned. The Originating Bank sent the Receiving Bank a WIRE RECALL NOTICE through BANKERS XXXX XXXX XXXX ( XXXX ) well in time on XX/XX/2023 ( exhibit 2 ). Sending a RECALL NOTICE is the standard procedure in all XXXX Banks when there is a problem with a wire. The FTC suggests a Recall Notice as the first and the most important step for the recovery of funds. 
Chase did not reply to our message until XXXX month later on XX/XX/2023. ( Exhibit 3 ). Until then, the funds seem to have been with Chase Bank. Chase never initiated any contact with us, in any way. They seem to have communicated with unknown persons who perpetrated the fraud. Chase finally responded and said the funds were a legitimate transfer for purchase of Auto Parts from some entity by the name of XXXX. Chase Bank instructed us to contact XXXX whom we had no possible way of identifying or locating. Chase could not have failed to see that the company that received the funds was not XXXX XXXX, XXXX ( the recipient company name on the wire transfer ) Chase bank informed us that they had no responsibility and liability for what has happened to our wire transfer. In coming to that conclusion, Chase bank did not bother to discuss this matter with us. They were obligated by common sense and by any concept of fairness to ask for information from the defrauded party ( XXXX XXXX, XXXX ), when they were deciding an issue. This they did not, showing complete negligence and indifference towards us and their fiduciary duty. 
We were dismayed by Chases advice ( Exhibit 3 ) to talk with XXXX. We had no idea, no contact, no knowledge of XXXX and its contact information and whereabouts, and no clue about XXXX XXXX business. Our transaction was for the purchase of XXXX XXXX XXXX XXXX. The same day that we received Chaase Banks response, the originating Bank responded with detailed information about the wire ( Exhibit XXXX ). This had detailed analysis and information. We specially advised Chase that the wire is result of a fraud, there is a Police case, and the matter is reported to FBI, and requested that the funds should not be disbursed. Chase did not respond. 
Because we had notified Chase of FRAUD, we were sure that Chase will pay special attention to this transaction and at least will not let the funds go away. This was not a run of the mill wire for which Banks have obtained lot of protection against errors. This was a case where FRAUD has already been reported to Chase and several Law Enforcement agencies. We were sure that Chase would at least obtain our opinion before doing anything. We were sure that Chase would look at the narrative of the remittance and would see that the name of the correct recipient was XXXX XXXX XXXX and the purpose of the wire. But Chase did not see anything and concluded incorrectly that it was legal transaction for purchase of auto parts. 
Chase also suggested at a certain point that we should complain to the XXXX Bank for the recovery of funds, knowing fully well that the XXXX Bank has nothing to do with the disbursal of funds of the wire. This type of misdirection was a continuous strategy of Chase. 
All funds were still with Chase when they received RECALL NOTICE on XX/XX/2023. They appear to have control of funds even after a month later too when they responded. Chase had adequate time to investigate the matter fully and reach the correct conclusion. Chase bank has consistently demonstrated a lackadaisical attitude about what has happened. In exactly the same circumstances, at the same time, we got money refunded by XXXX XXXX Bank within 7 days. But not with Chase. 
If Banks are not allowed to pay a fraudulent check, how they can be allowed to pay a fraudulent wire? Even after being EXPRESSLY NOTIFIED of a CRIME, Chase erred in not recognizing it giving importance to the fact that a federal crime has taken place, and they are required to pay special attention to such wires. In the final analysis Chase Bank helped the criminal at the expense of honest businessmen. 

Sincerely/XXXX XXXX XXXX