[Request for Relief for Army Finance Officer and Two Cashiers]

B-223375, MAY 14, 1987, OFFICE OF GENERAL COUNSEL

APPROPRIATIONS/FINANCIAL MANAGEMENT - ACCOUNTABLE OFFICERS - DISBURSING OFFICERS - RELIEF - ILLEGAL/IMPROPER PAYMENTS - SUBSTITUTE CHECKS DIGEST: RELIEF IS GRANTED ARMY DISBURSING OFFICIALS UNDER 31 U.S.C. SEC. 3527(C) FROM LIABILITY FOR IMPROPER PAYMENT RESULTING FROM THE NEGOTIATION OF TWO CHECKS DRAWN ON CLOSED BANK ACCOUNTS AS PART OF A FRAUDULENT CHECK CASHING SCHEME. PROPER PROCEDURES WERE FOLLOWED IN THE PAYMENT OF THE CHECKS AND THERE WAS NO INDICATION OF BAD FAITH ON THE PART OF THE DISBURSING OFFICIAL AND HIS SUBORDINATES.

BRIGADIER GENERAL B. W. HALL:

THIS RESPONDS TO YOUR REQUEST FOR RELIEF UNDER 31 U.S.C. SEC. 3527(C) FOR CAPTAIN ERIC M. WITZBERGER, FINANCE CORPS, DSSN 6459, 105TH AREA FINANCE SUPPORT CENTER NEW YORK, SERGEANTS EDWARD M. KABAT AND THOMAS C. INGRAM, IN THE AMOUNT OF $1,000.00. FOR THE REASONS STATED BELOW, RELIEF IS GRANTED.

ON JUNE 10, 1985, AN UNIDENTIFIED MAN POSING AS SGT. ROBERT E. LOTT OBTAINED AN ACTIVE DUTY IDENTIFICATION CARD (ID) BEARING THE NUMBERS 1492614 AND THE UNIDENTIFIED MAN'S PICTURE IN FORT GORDON, GEORGIA. AROUND JUNE 11, 1985, THE MAN POSING AS SGT. LOTT OPENED A SERIES OF CHECKING ACCOUNTS IN BOTH MARYLAND AND SOUTH CAROLINA. ON JUNE 14, 1985, HE BOARDED A FLIGHT TO RAMSTEIN AIR BASE, RAMSTEIN GERMANY. UPON ARRIVAL, HE BEGAN CASHING CHECKS DRAWN ON THE MARYLAND AND SOUTH CAROLINA BANKS AT VARIOUS UNITED STATES MILITARY INSTALLATIONS THROUGHOUT GERMANY. PRESENT WE ARE CONCERNED ONLY WITH TWO $500 DISHONORED CHECKS DRAWN ON THE SOUTH CAROLINA NATIONAL BANK, COLUMBIA, SOUTH CAROLINA. WE NOTE THAT WE HAVE PREVIOUSLY GRANTED RELIEF TO ACCOUNTABLE OFFICERS WHO WERE LIABLE IN CONNECTION WITH THIS SAME CHECK CASHING SCHEME. B-223375, SEPTEMBER 9, 1986. THE TWO CHECKS IN QUESTION WERE CASHED ON JUNE 20 AT THE 105TH AREA FINANCE CENTER WHERE CAPTAIN WITZBERGER WAS THE FINANCE OFFICER AND SERGEANTS KABAT AND INGRAM WERE CASHIERS. IN BOTH INSTANCES THE STANDARD OPERATING PROCEDURES WERE ADEQUATE AND THE PROPER CHECK CASHING PROCEDURES WERE FOLLOWED.

THE IMPROPER PAYMENTS IN THIS CASE WERE THE RESULT OF CRIMINAL ACTIVITY IN WHICH A TOTAL OF 15 CHECKS IN THE SUM OF $7,129 HAVE BEEN CASHED THROUGHOUT GERMANY. THIS WAS BEYOND THE CONTROL OF CAPTAIN WITZBERGER, SERGEANTS KABAT AND INGRAM. THEY DID NOT ACT IN BAD FAITH OR WITHOUT REASONABLE CARE. WE HAVE ALREADY GRANTED RELIEF TO OTHERS WHO WERE DECEIVED UNDER THE SAME SCHEME. FOR THESE REASONS, RELIEF IS GRANTED.