If a cheque turns out to be forged how long would the victim be liable to pay back funds to the bank?

Question

My partner may be the victim of fraud. He received a cheque for goods supplied and paid it into his bank account on the 15th June 2006. So far, no problem, funds have cleared and most have been used for other purposes but he has reason to believe that the customer who supplied the cheque is suspect. He has been unable to contact them and can find no trace of them. How long would he remain liable if the cheque was stolen or forged? He has no savings and is worried that the bank would demand all the money, that he has spent believing the funds were cleared and legitimate, immediately. He has reported his suspicions to the police but they say they are unable to give guidance on these matters. Is there anything that can be done to help him if he has been victimised? Many thanks to all for giving my questions consideration whether or not you are able to help.

Answer 1

I don't the the question is about criminal liability although clearly if it was percieved you were involved in the fraud knowingly you could face charges.

The money can be taken back from your account at any point, as it may go several weeks / months before the cheque is discovered to be counterfeit. (i.e. whenever the account holder gets his statement and spots it, rings the bank and they trace the account into which it was paid from the document handler line on the back). At that point you will lose the money!

Most of the Banks are wise to the number of forgeries out there, as are companies in the IT sector receiving large orders from Nigerian businessman, who then pay with a UK cheque!

If ever in doubt get your bank to check it out for you. They are your best hope.

Answer 2

I don't think he is liable. This just happen at my company. An employee was forging company checks, he got 5 years. But, you said your friend didn't know the money was stolen? How is that against the law? There has to be intent...