Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

LASALLE BANK LAKE VIEW v. SEGUBAN

May 11, 1994

LASALLE BANK LAKE VIEW, an Illinois banking corporation, Plaintiff,
v.
ELLEN SEGUBAN, RAFAEL SEGUBAN, and JOHN DOE, Defendants.



The opinion of the court was delivered by: CHARLES RONALD NORGLE, SR.

 CHARLES R. NORGLE, SR., District Judge:

 Before the court is the motion of plaintiff LaSalle Bank Lake View ("Bank") for summary judgment. For the following reasons, the motion is granted.

 FACTS

 The Bank has filed suit under the Racketeer Influenced and Corrupt Organizations Act ("RICO"), 18 U.S.C. § 1961, et seq., with pendent state claims for breach of fiduciary duty, conversion, and fraud. The Bank brings this action against defendant Ellen Seguban ("E. Seguban"), a former Assistant Teller Manager of the Bank, based on the Bank's discovery of a series of fraudulent transactions which divested the Bank of $ 940,000 during a twelve-year period between 1981 and 1993. Also named as a defendant is Rafael Seguban ("R. Seguban"), E. Seguban's husband, who, according to the Bank, is liable based on his acceptance and use of funds which he knew were obtained illegally from the Bank.

 According to the Bank, E. Seguban was able to embezzle its funds by way of fictitiously balancing credit and debit transactions so that unauthorized money withdrawals from the vault could not be detected. Each time a bank teller receives cash from the Bank's vault, the teller and the vault supervisor execute corresponding credit and debit receipts known as "teller tickets." At the end of each day, the teller tickets are submitted in order for the Bank to enter and register those credit/debit transactions into its record. After approximately three days, if the credit and debit receipts do not balance, the Bank's internal security controls are triggered and the unmatched transactions are investigated. The Bank alleges that in September 1993 it discovered a discrepancy in its teller tickets which led it to investigate the transactions indicated on those tickets.

 Upon questioning by the Bank, E. Seguban admitted to disguising fraudulent transactions by executing false teller tickets approximately every three days over the twelve-year period. E. Seguban signed a statement to the effect that she did so in order to conceal a fraudulent transaction made by a former bank manager, identified only as John Doe ("Doe"). E. Seguban refused to provide the true identity of Doe. E. Seguban also confirmed that she had prepared the false teller tickets which triggered the Bank's internal investigation.

 According to the Bank's allegations, R. Seguban aided and abetted E. Seguban's embezzlement scheme. R. Seguban knew that his wife was embezzling funds from the Bank over many years and that those funds were used to pay for a family lifestyle far exceeding the Segubans' combined annual income of approximately $ 50,000. A federal criminal investigation is currently proceeding against both E. Seguban and R. Seguban (collectively "Segubans").

 In response to the Bank's discovery requests, Segubans asserted their Fifth Amendment privilege against self-incrimination and refused to comply with those requests. As a result, the Segubans refused to participate in routine discovery, preventing the Bank from learning material facts and those facts which may lead to material evidence.

 The Bank asserts that E. Seguban violated 18 U.S.C. § 1344 by knowingly executing a scheme (1) to defraud a financial institution, or (2) to procure funds under the custody of a financial institution by means of fraudulent pretenses, representations, or promises. The Bank, therefore, argues that the conduct constitutes "racketeering activity" as defined under 18 U.S.C. § 1961. Additionally, the Bank contends that E. Seguban repeatedly violated 18 U.S.C. § 1344 over approximately twelve years and thereby engaged in a "pattern of racketeering activity" within the meaning of 18 U.S.C. § 1961. E. Seguban is a "person" within the meaning of 18 U.S.C. § 1961. Furthermore, the Bank asserts that E. Seguban violated 18 U.S.C. § 1962(c) through her employment with the Bank because she conducted the Bank's affairs through racketeering activity. The Bank claims that this conduct injured the Bank's business or property by embezzling at least $ 940,000 of its funds in violation of 18 U.S.C. § 1962(c).

 As a result of these RICO violations, the Bank requests an award of treble damages and attorneys' fees from E. Seguban. Furthermore, the Bank asserts that the Segubans conspired to violate 18 U.S.C. 1962(c) in violation of 18 U.S.C. § 1962(d) and are, therefore, jointly and severally liable to the Bank for treble damages and attorney's fees under 18 U.S.C. § 1964(c). *fn1"

 As to the state claims, the Bank asserts that E. Seguban breached the fiduciary duties of loyalty, honesty, and fair dealing she owed to the Bank. The Bank claims that R. Seguban and Doe knew of, encouraged, and solicited her embezzlement of the funds. Therefore, according to the Bank, they are jointly and severally liable. ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.