Yes, you are liable. When money is withdrawn from your account for any person or any purpose, you have to cover that amount (e.g. have or deposit money into the account to make good the withdrawal). It does not matter if you were the victim of a bad check--if you took or allowed money to be taken out of your account, you are liable for it. You, in turn, could sue your alleged "friend"--including, for smaller amounts (several hundred, as opposed to several thousand, dollars), in small claims court, where you could act as your own attorney and save on legal fees.In the future, do NOT do this: it is a very common scam or form of theft.