
    Percival Wilds, as Trustee in Bankruptcy of Winfield S. Norris, Trading as Scott Norris & Company, Appellant, v. Lebanon National Bank, Respondent.
    (Argued June 14, 1927;
    decided July 20, 1927.)
    
      Banks and banking — fraud — deposit by manager of business of checks drawn to order of firm in bank to account of dummy corporation — withdrawal of such funds and transfer thereof to his own use. — liability of bank therefor.
    
    
      Wilds v. Lebanon Nat. Bank, 219 App. Div. 597, affirmed.
    Appeal from a judgment, entered April 9, 1927, upon an order of the Appellate Division of the Supreme Court in the fourth judicial department, reversing a judgment in favor of plaintiff entered upon a decision of the court on trial at Special Term and directing a dismissal of the complaint. The suit is brought by a trustee in bankruptcy of an insolvent who trading as Scott Norris & Company ran a business under that name. One Carlisle Rowntree was the manager of the business and had a power of attorney given by the bankrupt which authorized him to draw and indorse checks for legitimate purposes of the business. The' complaint alleged that Rowntree operated this concern for his own profit as a bucket shop; and that for the purpose of converting to his own use moneys of Scott Norris & Company, in fraud of said Norris and his creditors, he indorsed checks drawn by customers of Scott Norris & Company and deposited them in the defendant bank to the account of Peabody & Adams, a dummy corporation, which he had formed, and thereafter withdrew the funds and used them for his own purposes. The Appellate" Division held that the bank was a mere depositary and the checks being drawn by a person authorized to make withdrawals, it was not liable.
    
      Caruthers Ewing and Tracy S. Voorhees for appellant.
    
      John E. Joyce and Jeremiah F. Connor for respondent.
   Judgment affirmed, with costs; no opinion.

Concur: Cardozo, Ch. J., Pound, Crane, Andrews, Lehman, Kellogg and O’Brien, JJ.  