EDWARDSVILLE – A real estate company claims a bank is refusing to hand back more than $1.4 million allegedly stolen and placed in one of its accounts.
Ave Inc., a Texas-headquartered corporation with an office in Wood River, accused a branch of Renasant Bank of failing to carry "usual and customary" checks that would have prevented the account being opened. Attempts by the Madison Record to obtain comment from the branch were unsuccessful.
The suit, filed in Madison County Circuit Court, has its roots in the sale of a $1.75 million property in South Las Vegas on April 9.
A title agency issued a check for $1.455 million, which was first sent to a co-payee, Grois Avenue Ltd, according to the complaint. The co-payee endorsed the check and sent it on to the Wood River office.
In Illinois, the check was stolen, the plaintiff claims, adding that it was taken to a branch of Renasant Bank in Mobile, Ala. The account was allegedly opened under the corporate name of Ave Inc.
The alleged thief was then able to open an account. The defendant is accused of failing to use the "usual and customary bank practices," the lawsuit said.
These include, according to the complaint, failing to examine the corporate record book or charter, failing to examine any IRS identification letter, or failing to find out the names of stock holders or directors.
Further, the bank did not receive or seek any local address for the individual who opened the account, it is alleged.
Driggs Title Agency, which issued the original check, attempted to have it canceled, and the plaintiff said it has been in weekly contact with the bank demanding the return of the money.
The bank refused, arguing it needed to check whether the U.S. government had a claim, the lawsuit said. The federal government stated it did not have any claim in late May, according to the suit.
Ave Inc. said it is losing $10,000 a month in rental payments because it is unable to close on another deal, this one in Omaha, Neb.
The company asked the court to order the bank to hand over the $1.455 million, plus 9 percent pre-judgment interest and $10,000 a month beginning from June.
Ave is represented by Thomas G. Maag of the Maag Law Firm in Wood River.
Madison County Circuit Court case No. 2019-L-1216.