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BetterWorldisanenvironmental engineering finnspecializinginprovidingpollution control services togovernment and industrial clients.RoseKaplan is better World's President, Victor Bhatia isitssenior Vice President, andTerri Schulz isitsOffice Manager.

OnJune 22,2012, Nicholas Fredich placed anad intheAndover Townsmen classified section seeking applicants for a fictitious bookkeeping position.He used oneofthe resumes solicited bythisad inordertoobtain a dateof birth and social security number of"Robert C.Landrum,"whoseidentity andaccounting background heassumed inorder to applyforabookkeeping position withBetter World.He and MarioCarasco created a companycalled Vichor Corporation andopened abankaccountforthatcompany atTCF Bank.Fredich intended touse blank checks from Better World's checkingaccount with Mid-America tomake deposits into Vichor's account atTCFBank and then withdraw those funds from that account for his personal use.

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Kaplan, inher capacity asPresident ofBetter World, interviewedFredich posingas Landrum for a bookkeeper's position with Better World.She reviewed his application, checkedhisreferences, andobtained acreditreport usingthesocialsecuritynumberthat he provided.She also called "Landrum's" prior employer, Mario Carasco, who reportedly was thePresident ofMid-ContinentalInvestment.Carasco gaveKaplan a very favorable recommendation of"Landrum".

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Schultz,inhercapacityasPresidentofBetterWorld,conductedacreditcheckon

"Landrum".Baseduponthefavorablebackground andcreditcheck,Kaplanextended an offerofemployment to"Landrum," and hebeganworking atBetter WorldonSeptember 2, 2012, as a bookkeeper.

OnWednesday, September 17,2012,"Landrum"leftworkearly because heclaimed he had received an emergency phone call that his mother-in-law had just died.Later, Kaplan lefta message onhishomeanswering machine, expressing her condolences for his lossandrequesting that he inform her astowhen he would be returning towork. "Landrum"calledKaplan backonThursday, September 18,2012,statingthatheneeded a couple ofdays off,but would return towork onSaturday.Kaplan told him hecould come back to work on Monday.

On Monday, September 22, 2012, after "Landrum" failed toshow up for work, Kaplan asked Schulz whether hehad called inand said hewas going to be late.Schulz did not haveany informationbecauseshe had notspoken to, orreceived a message from him. Kaplan and Schultz madeseveral calls to"Landrum's" home, and each time received a recordedmessagerequestingamailcode.Kaplanattempted tocallCarascotodetermine if"Landrum"hadgonebacktoworkforhim,butsheonlyreachedanansweringservice.

) By thistime,Kaplan was becoming suspiciousof"Landrum"soshechecked herofficeto determine if anything was missing.She unlocked the filecabinet and with Schultz's assistancediscovered thatsomechecks weremissing.Sheimmediately informed Bhatia, and thetwo ofthem met with Mid-America'smanager, Kathy Filafusi who infonned themthatthemissing checks had already been processedby the bank, and that deposits had been madeinto other accounts ofwhich Kaplan and Bhatia had no knowledge.

KaplanandBhatiaimmediatelyfiledareportwiththelocalpolice.

Atotal of$137,445.02 had been taken from Better World's account at Mid-America. Mid-America recovered $85,516.82 on behalf ofBetter World, but refused to credit Better World's account forthe remaining $51,928.20, which included three checks totaling$31,900.20, and awiretransfer inthe amount of$20,020.Thesechecks wereas follows:checknumber 5150payabletoVichorCompany intheamount$21,326.52, and presented toTCF Bank for deposit onSeptember 10,2012; check number 5244, also payabletoVichor Company inthe amount of$10,139.39 and presented toTCFBank for deposit on September10,2012; check number 5245 in the amount$442.29 payableto Ameritech; and check number 5171, which evidenced a wiretransfer in theamount of

$20,020.00.

Better World'sBankaccount withMid-America listedBhatiaandKaplanastheonlytwo signatories, and all ofthechecks purportedlybore Bhatia's Signature.Bhatia later

j determinedthatthesignaturesonthemissingchecksandtheunauthorizedwiretransfer

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applicationhadbeen forged.Fredich wasultimatelyarrestedandprosecutedforhis

crimesand pied guiltyto the forgeriesin a UnitedStates DistrictCourt. Atthecloseof theevidence, thetrial court found in favorofBetter World.

1. MakeMid-America'sargumentonappeal.

1. Howshouldthecourtrule?Fullysupportyouranswer.