Scenario 3 - Financial Scams

Nick was the victim of a Nigerian email scam. He agreed to receive money owed to Nigel, a gentleman in allegedly located in London and would then pay the money out as directed by Nigel in exchange for a 10 percent fee. Nick received four checks totaling $37,500 and deposited them in an account at Home Bank. Nick then requested that Home Bank pay out $32,000. Thereafter, all of the checks Nick deposited bounced. Home Bank filed suit against Nick to recover the overdraft. Nick claims that Home Bank was negligent.

• Explain the arguments for each party and make a ruling as to which party should win supported by applicable law.
• Cite a relevant case to this scenario