Doctors File Lawsuit Against Bank Over Millions Stolen

Posted By Power Rogers & Smith, P.C. || Nov 14, 2013

Partner 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 $20 million.

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 and family.

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, L.L.P. 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 here.

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