Bank Liable for Contractor's Fraudulent Conversion

LOS ANGELES - A California appellate court has found for homeowners who sued a bank for conversion for paying a mold remediator who didn't finish the work but forged the homeowner's signatures and cashed the $39,417.95 insurance check. Kim v. Hanmi Bank, No. B170835 (Calif. 2nd App. Dist.).

Tae Hyun Kim and his wife sued the contractor and its principal, Statewide Development and Kun Houng Pak, Fire Insurance Exchange and Hanmi Bank, which cashed the check made out to Kim, his wife and Statewide.

Hanmi Bank argued at trial that Kim transferred his interest in the home to his …