Opinion ID: 2211447
Heading Depth: 1
Heading Rank: 4

Heading: Funds reach intended payee

Text: A defendant establishes element (1) by proving that the proceeds of the check found their way to the person the drawer intended to ultimately receive them. In the case of a jointly payable check in which the signature of a co-payee is forged and the proceeds reach the other payee, a defendant could establish this element by showing that the non-signing co-payee was never intended to receive any part of the proceeds and the person ultimately intended by the drawer to receive the funds was in fact the other co-payee. Under the facts of this case, the Banks have established element (1). It is undisputed that Walsh, the receiving co-payee, was the only person intended to ultimately receive the funds from the checks. There is no allegation that the co-payee investors were ever intended to receive the proceeds.