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Treasurer says KeyBank credited district $1,992.09 after three fraudulently altered checks
Summary
The district treasurer told the board that KeyBank issued a one-time credit totaling $1,992.09 for three fraudulent items after a long review and that the treasurer filed a police report; the funds have been returned to the district account.
The East Cleveland City School District treasurer reported to the board on April 13 that KeyBank has applied a one-time credit for three denied fraudulent items, restoring $1,992.09 to the district’s operating account.
The treasurer said the bank’s fraud unit told the district that claims should generally be reported within 30 days of the first fraudulent transaction, and that the length of time since the transactions limited recoverability in some cases. She reported she had filed a police report with the East Cleveland Police Department and that the department asked to be kept apprised of the bank’s actions; the treasurer said she would notify police that the funds have been recovered and expected the department to close the case.
Board members asked for clarification about how the fraudulent checks were issued. The treasurer said the checks were genuine district checks that fraudsters altered — changing payee names and dates — then cashed at KeyBank. She declined to read payee names aloud and reiterated that the three specific checks were shown to the board when the issue was first raised.
The treasurer said she will follow up with the board once the bank posts the credit to the account. No formal action was required; the report was presented for the board’s information.
