Columbia Bank v. Morgan

It is conceded that the amount owing by Markgraf to the defendant was paid out of the assets of the bank; that the check delivered by Markgraf to the defendant was not deposited in the bank, and that the amount thereof was not charged to his account. The actual transaction that took place at the bank on the 31st day of March, 1924, did not appear upon the records of the bank. When the examination of the bank’s books was made in September, 1924, it was discovered that Markgraf had embezzled funds of the bank prior to defendant’s loan to him, and that he had also been guilty of embezzlement of…