Opinion ID: 1745216
Heading Depth: 1
Heading Rank: 3

Heading: Overdrafts and false representations

Text: Wimbledon Hills kept a checking account with First Bank Southeast at Rochester. On August 5, 1988, respondent, as president of Wimbledon, drew a $150,000 check on this account. The bank balance at the time was $961.28. Three days later, when the bank refused to honor the check, respondent covered by depositing three other checks. The bank then paid the $150,000 check drawn on the Wimbledon account only to learn some 10 days later that one of the three deposited checks for $50,000 had been returned unpaid. On August 12, respondent telephoned a bank officer to say he was contemplating writing certain checks on the Wimbledon account in excess of funds on deposit. He told the bank officer that he was leaving for Europe that day but later that day he would have $400,000 deposited in the Wimbledon account to cover the checks he was writing. The bank honored respondent's checks, but no deposit to cover was made, and, as a result, the account was overdrawn. From August 18 to August 26 the account was overdrawn by over $100,000; thereafter and until January 1989, it was overdrawn some $63,000. The debt was not paid until the bank sued. The referee found that the representations made to the bank officer on August 12 were false. Respondent does not contend the overdrafts did not take place. He claimed that a deposit was to have been made on August 12 but he could not state who was to make it or from where the money was to be obtained. The evidence supports the referee's findings, and the misconduct is a violation of Rule 8.4(c) (conduct involving dishonesty, fraud, deceit or misrepresentation).