Insight for my hindsight

[Dent1Associates]

i have a 3 month old s-corporation in mississippi
this is the scenario anxious to do some business and make a good profit we accepted and deposited in the corporate bank acct. a third party check for payment of our products and after the bank honored the deposit we withdrew the funds and returned the balance to the customer whom has vanished!
one week later the bank calls and says the check is no good
of course we've been had but the bank wants us to pay back the money on the check they honored what is my posistion in this situation? I did sign the deposit and withdrawal as designated
signer on the corporate acct. the check was for more than the cost of the merchandise and as i said hindsight being 20/20 i
should have insisted the customer cash the check and give me certified funds but we are new and learning the hard way.
help with some advice please on where we stand. thanks

 

[loku]

I agree that you are learning the hard way. You owe the money to the bank. By endorsing and cashing the check, you guarantee it to the bank. Your recourse is against the customer if you can find her/him.