From Buffalo Business First:
A lawsuit filed by KeyBank N.A. reveals more details about suspected fraudulent activity by a business client.
The complaint – which was initially filed July 9 with the U.S. District Court for the Northern District of Ohio and amended a day later – alleges that KeyBank lost or is at risk of losing about $122 million as a result of the “willful breaches and fraudulent conduct” of an Indiana-based payroll processor and its CEO.
The lawsuit names Interlogic Outsourcing Inc. and Najeeb Khan as defendants. Interlogic is based in Elkhart, Indiana; Khan is based in Michigan.
Parent company KeyCorp (NYSE: KEY) told regulators July 16 that it discovered fraudulent activity that could cost the bank up to $90 million. In a statement, the bank said it is investigating a “processing irregularity” and believes the event is an isolated incident.
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