JANUARY 26, 1924, 3 COMP. GEN. 453
Highlights
CHECKS - FORGED ENDORSEMENTS - REISSUE IN VIEW OF THE LONG-CONTINUED AND GENERALLY RECOGNIZED PRACTICE WHICH IS NOT PROHIBITED BY ANY LAW ENACTED BY CONGRESS. WHICH WAS FRAUDULENTLY OBTAINED BY ANOTHER AND PAYMENT OBTAINED FROM THE TREASURER OF THE UNITED STATES ON THE FORGED ENDORSEMENT OF THE PAYEE. RECLAMATION OF THE AMOUNT OF THE CHECK HAS NOT AS YET BEEN EFFECTED AND THE QUESTION FOR DECISION IS WHETHER CLAIMANT MAY BE PAID. IN THE ABSENCE OF SUCH RECLAMATION AND WHILE SUIT IS PENDING AGAINST THE PRESENTING BANK. CLAIMANT WAS FOUND BY THE DIRECTOR OF THE UNITED STATES VETERANS' BUREAU TO BE ENTITLED BY REASON OF INJURIES SUSTAINED IN THE MILITARY SERVICES TO COMPENSATION UNDER THE PROVISIONS OF THE WAR RISK INSURANCE LAWS.
JANUARY 26, 1924, 3 COMP. GEN. 453
CHECKS - FORGED ENDORSEMENTS - REISSUE IN VIEW OF THE LONG-CONTINUED AND GENERALLY RECOGNIZED PRACTICE WHICH IS NOT PROHIBITED BY ANY LAW ENACTED BY CONGRESS, CLAIMS BY THE RIGHTFUL PAYEE OF A GOVERNMENT CHECK WHICH HAS BEEN CASHED BY ANOTHER UNDER A FORGED ENDORSEMENT, MAY CONTINUE TO BE ALLOWED BY THE GENERAL ACCOUNTING OFFICE, IF DRAWN AGAINST A LUMP-SUM APPROPRIATION, WITHOUT AWAITING THE RECLAMATION OF THE AMOUNT.
DECISION BY COMPTROLLER GENERAL MCCARL, JANUARY 26, 1924:
WILLIAM HOFFMAN MILLER HAS REQUESTED ALLOWANCE OF $1,427.52, AS THE AMOUNT OF CHECK NO. 43664, ISSUED TO HIM MAY 9, 1922, BY JOSEPH F. KELLEY, SPECIAL DISBURSING AGENT, UNITED STATES VETERANS' BUREAU, AND WHICH WAS FRAUDULENTLY OBTAINED BY ANOTHER AND PAYMENT OBTAINED FROM THE TREASURER OF THE UNITED STATES ON THE FORGED ENDORSEMENT OF THE PAYEE. RECLAMATION OF THE AMOUNT OF THE CHECK HAS NOT AS YET BEEN EFFECTED AND THE QUESTION FOR DECISION IS WHETHER CLAIMANT MAY BE PAID, IN THE ABSENCE OF SUCH RECLAMATION AND WHILE SUIT IS PENDING AGAINST THE PRESENTING BANK.
CLAIMANT WAS FOUND BY THE DIRECTOR OF THE UNITED STATES VETERANS' BUREAU TO BE ENTITLED BY REASON OF INJURIES SUSTAINED IN THE MILITARY SERVICES TO COMPENSATION UNDER THE PROVISIONS OF THE WAR RISK INSURANCE LAWS, 40 STAT., 406, 41 ID., 373, 42 ID., 153. THE ACT OF MARCH 4, 1921, 41 STAT., 1374, FOR THE FISCAL YEAR CURRENT WHEN CLAIMANT WAS FOUND TO BE ENTITLED TO COMPENSATION, PROVIDES:
FOR MILITARY AND NAVAL COMPENSATION FOR DEATH OR DISABILITY, $125,000,000; AND THE UNEXPENDED BALANCES OF THE APPROPRIATIONS FOR MILITARY AND NAVAL COMPENSATION FOR THE FISCAL YEAR 1921 ARE CONTINUED AND MADE AVAILABLE DURING THE FISCAL YEAR 1922 FOR THE PAYMENT OF COMPENSATION FOR DEATH OR DISABILITY.
THE PAPERS FILED BY CLAIMANT SHOW A CERTAIN STREET ADDRESS IN CHICAGO; JUST PRIOR TO ISSUANCE OF THE CHECK FOR THE ALLOWED COMPENSATION A CHANGE OF ADDRESS WAS FILED SHOWING 917 SUPERIOR STREET, TOLEDO, OHIO. THE DISBURSING CLERK MAILED THE CHECK TO SAID ADDRESS. IT APPEARS THAT IN APRIL, 1922, A MAN GIVING HIS NAME AS WILLIAM HOFFMAN MILLER OPENED A SAVINGS ACCOUNT AT THE DIME SAVINGS BANK IN TOLEDO AND GAVE HIS ADDRESS AS 417 SUPERIOR STREET, A PLACE WITH A POOL ROOM ON THE FIRST FLOOR AND A RESTAURANT ON THE SECOND, THE PROPRIETORS OF WHICH DENIED ALL KNOWLEDGE OF WILLIAM HOFFMAN MILLER. ON MAY 1, 1922, THE SAME PERSON OPENED A CHECKING ACCOUNT AT SAID BANK, GIVING HIS ADDRESS AS 917 SUPERIOR STREET, TOLEDO, A ROOMING HOUSE. THE CHECK FOR $1,427.52 WAS DEPOSITED ON MAY 11 BY THIS PERSON TO THE CREDIT OF HIS CHECKING ACCOUNT AND ON MAY 12 AND 17, 1922, HE WITHDREW ALL OF HIS DEPOSITS SAVE $1 IN HIS SAVINGS ACCOUNT AND 52 CENTS IN HIS CHECKING ACCOUNT. BOTH THE CHANGE OF ADDRESS AND THE ENDORSEMENT ON THE CHECK HAVE BEEN SHOWN TO BE FORGERIES. RECLAMATION WAS DEMANDED OF, AND REFUSED BY, THE PRESENTING BANK AND SUIT HAS BEEN INSTITUTED AGAINST SAID BANK TO ENFORCE RECLAMATION.
UNDER THE LAW AND DECISIONS CLAIMS OF THIS CHARACTER CLEARLY ESTABLISHED TO THE SATISFACTION OF THIS OFFICE AND INVOLVING LUMP-SUM APPROPRIATIONS, MAY BE ALLOWED PENDING RECLAMATION OF THE AMOUNT OF THE CHECK INVOLVED. SEE 13 COMP. DEC., 679; 16 ID., 151; 26 ID., 855 6; 10 MS COMP. GEN., 1089; 2 COMP. GEN., 102-6. AND SETTLEMENT WILL BE MADE IN THIS CASE AFTER RECEIPT OF ADVICES FROM THE DIRECTOR OF THE UNITED STATES VETERANS' BUREAU AS TO WHETHER THERE HAS BEEN ANY CHANGE IN THE COMPENSATION STATUS OF CLAIMANT REQUIRING DIMINUTION OF THE AMOUNT OF COMPENSATION ORIGINALLY ALLOWED.
WHILE IT HAS BEEN LONG REGARDED AS PERMISSIBLE TO ALLOW SUCH CLAIMS I AM STRONGLY OF THE OPINION THAT SUCH ACTION IS IN CONTRAVENTION OF ALL MODERN PRINCIPLES OF APPROPRIATION AND APPROPRIATION ACCOUNTING. THE PRACTICE SEEMS TO HAVE DEVELOPED BY REASON OF THE ABSENCE OF PROHIBITORY STATUTES AND HAS BECOME SO GENERALLY RECOGNIZED AS TO APPEAR TO HAVE THE STATUS OF CONGRESSIONAL SANCTION, THE RIGHTS INVOLVED BEING REMEDIED WITHOUT APPROPRIATE LEGISLATION.
PENDING ACTION BY THE CONGRESS THIS OFFICE WILL BE WARRANTED IN CONTINUING TO ENTERTAIN AND ADJUST CLAIMS OF THIS CHARACTER.