Devon C. Bruce of Power, Rogers & Smith, L.L.P. filed a lawsuit on behalf of a group
of women's health clinics accusing Devon Bank of “turning a
blind eye” to 20 years' worth of signs of fraud, allowing two
former employees to steal
This story was featured in a recent article in Crain’s Chicago, “The
$20 Million Fraud Scheme That Almost Never Ended”. The story explains
how two employees opened accounts at Devon Bank in the names of ventures
nearly identical to ventures that the physicians actually controlled.
However, the owners did not have other accounts at Devon Bank. In a series
of “highly irregular or highly suspicious” transactions, the
two former employees wrongfully deposited checks into their accounts,
checks that were intended for the owners or their businesses.
The bank ignored “red flags” about the transactions, even though
it was equipped with software programs and other procedures to detect
such frauds. The article highlights the importance for medical practices
to audit their books regularly and establish procedures to catch financial
discrepancies, even if their money is under the watchful eye of friends
Mr. Bruce is quoted in the article calling the case a “tragic incident
of embezzlement.” “It is clear from the available evidence
that Devon Bank repeatedly violated reasonable commercial banking standards,”
Mr. Bruce said.
As discussed previously in this blog, Mr. Bruce was the attorney who represented
the City of Dixon in the Civil Suit following the embezzlement scandal.
Mr. Bruce was recently presented an award by the Association of Certified
Fraud Examiners, in recognition of service to reduce fraud worldwide.
Power, Rogers & Smith, L.L.P. has handled accounting, legal and banking
malpractice cases. These types of professional negligence claims are extremely
complex, document-intensive, and require attorneys with the knowledge,
experience and resources to successfully handle. Power, Rogers & Smith,
P.C. pursues these commercial cases on a contingency-fee basis, so the
client only owes fees or expenses if the firm recovers on behalf of the client.
The full Chicago Crain’s article can be found