Nonprofit Can’t Collect from Bank For Unauthorized Withdrawals

Failure to review bank statements and complain prevents organization from recovering losses

A nonprofit association in New York City has been told that it cannot collect $185,000 in unauthorized withdrawals from its account when it failed to review its monthly bank statements and complain over a period of five years. A trial court has granted Capital One Bank’s summary judgment motion to dismiss the complaint. ( Royal Arcanum Hospital Association of Kings County v. Herrnkind, Supreme Court of NY, Kings County, 3/28/12 .) The association originally authorized opening an account at a predecessor of Capital One in 1989. According to its board minutes, it authorized any two of its president (Frank Vassalo) vice-president (William Herrnkind) and treasurer (Joeseph Rugilio) to sign for...

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Nonprofit Can’t Collect from Bank For Unauthorized Withdrawals

Nonprofit Can’t Collect from Bank For Unauthorized Withdrawals