Chase accused of failing to do basic due diligence when opening new account
My bank requires copious and thorough documentation upon the opening of a business bank account and I am certain they check my state’s public entity database to confirm basic information about a legal entity before they will open an account.
Chase on the other hand, appears to skip some crucial steps in the confirmation process as is claimed in this lawsuit.
“Chase Bank assisted Salzman and Weiss in opening these bank accounts at Chase Bank, account numbers *4054 and *5990, and, upon information and belief, without conducting any due diligence whatsoever – but, regardless, manifestly inadequate due diligence – therefore egregiously violating and recklessly disregarding the ‘know your customer rule.’ A simple review of the Partnership Agreement for Freed & Weiss LLC, and/or the filings that were made by Freed & Weiss LLC with the Illinois Secretary of State, that were publicly available online at that time, would have shown the falsity of the representations made by Saltzman and Weiss.”
Ineptitude | admin February 28, 2012
