Portage, MI — In a legal battle that underscores the vulnerabilities in financial transaction systems, Michigan-based Beaver Research Company is suing Huntington Bank. The chemical company alleges that lapses in the bank’s system facilitated an embezzlement scheme by one of its own employees, resulting in a loss of over $880,000.
The lawsuit, initially filed in Kalamazoo County before being transferred to the U.S. District Court for the Western District of Michigan, claims the bank’s system gaps enabled the former employee to divert company funds to her personal account. This redirection of payments was masked to appear as though they were being sent to their legitimate recipients.
Erin Marie Hunter, the employee implicated in the embezzlement, was a resident of Leroy Township. Before she could be charged, Hunter died by suicide, a mere three weeks after the investigation commenced, as confirmed by statements from Portage police reports and a Calhoun County Sheriff’s Office spokesperson.
According to Hunter’s sister, Courtney Markos, the revelation of these thefts was shocking to the family, who had been unaware of Hunter’s actions. This tragedy has cast a shadow over the family, leaving them to mourn and remember Hunter for her virtues rather than her wrongdoings.
The discovery of the financial discrepancies came to light when the company’s new financial controller noticed anomalies in the records and alerted the Portage Police on May 16, 2023. An initial report on that day revealed an altered payment originally destined for Zenex, a Cleveland-based aerosol manufacturer. Instead, the $5,800 intended for Zenex had been rerouted to Hunter’s account.
Further investigations by the company exposed that Hunter had redirected approximately $883,000 to herself over a six-year period, making hundreds of transactions ranging from $1,000 to $12,000 each.
In response to the lawsuit, Huntington Bank’s attorneys have filed a motion to dismiss the case, challenging the basis of Beaver Research’s claims. They argue that the company’s own account agreements clearly state that it is responsible for transactions made using its login credentials, which were purportedly used in the embezzlement.
Despite the bank’s stance, the case highlights critical questions about the responsibilities of financial institutions in preventing fraud and detecting security breaches promptly.
This lawsuit arises amid growing scrutiny of banking systems and their ability to protect against internal fraud, especially in cases where the fraudulent activities span several years undetected.
As the legal proceedings continue, both parties are preparing to further elaborate on their positions. Daniel Boocher, the attorney representing Beaver Research, has opted not to comment further at this stage of the lawsuit.
Meanwhile, the community and those affected by the tragedy of Hunter’s death are left to reconcile the complexities of financial crime with the personal losses experienced by all involved. The case not only involves substantial financial restitution but also grapples with themes of trust, betrayal, and the unforeseen impacts of mental distress.