Smart Money: Fraud charges possible for forged signatures on CDs

Bruce Williams is a national radio talk show host and syndicated columnist

Dear Bruce: I inherited a sizable amount of money from my dad a few years ago. My husband and I put a lot of it into CDs in both of our names. Without my knowledge or signature my husband has cashed out those CDs. He will not tell me where the money went. I know he has it invested somewhere in his name only. I have been to three lawyers for advice. Two told me to file for divorce so he will have to confess. The third lawyer had no answers for me. What can I do to find out what happened to that money? We've been married for 50 years. B.L., Cedar Rapids, Iowa

Dear B.L.: If you know the banks that issued the CDs, they may have a partial solution to your problem. It would appear, from what you are saying, that your husband has forged your signature as both are required to redeem the CDs. If you are prepared to pursue fraud charges against your husband for forging your signature, the bank will have some very serious concerns for cashing the CDs without having your signature witnessed. It would seem one of two things are in play here. Either your husband doesn't trust your judgment, or you don't trust his. It may be that since you've indicated that your husband is along in years that he may not be acting as rational as he otherwise might.

You also should get hold of your federal income tax returns. If your husband has the money invested, unless it is in some tax-free instrument, there would have been 1099s issued to show the income from the investments. This would help track them. I don't think this would be all that difficult to do assuming the sums of money are worth pursuing, which apparently they are.

Dear Bruce: I have a friend who has a lot of credit card debt and other debt that is in write-off status. He wants to either pay off these debts or file for bankruptcy. He doesn't understand the long-term effect. He has gotten several settlement offers from the collection companies but has said that, even if he settles, it will continue to show up on his credit report. He is 28 years old and makes about $30,000 a year. His debt is $18,000, with $12,000 of student loans that he is paying off now. Reader, via e-mail

Dear Reader: The $12,000 is student loans are not dischargeable through bankruptcy, so he can forget about those in terms of options other than paying them. Even though the other debt has been charged off by the original debtor for their bookkeeping purposes, that does not eliminate the debt. These debts can, and often are, sold on the secondary market and someone will make an effort to collect them. I suspect that's already in progress, since people are calling offering deals. They've purchased the obligation at a severe discount. His credit is already in the toilet. Whether he chooses to pay it off and start on the road to recovery or declare bankruptcy and have the same result is entirely up to him.

His credit has been destroyed for a significant period of time. It is up to him to determine if he's going to do the honorable thing or take the easy way out. Six thousand dollars seems like a manageable number. At 28 years old, he got himself in, why not get himself out by having a part-time job over and above his regular income? That would be the best solution for all concerned.

Dear Bruce: My bank nailed me with insufficient funds fees in mid-March because checks arrived before the direct deposit. On March 28, I closed my account. They asked why was I leaving, and I told them my "totally free checking" has cost me over $80 in the last couple of months. On April 1, my Internet service drew $24 from the closed account, and the bank authorized it. Now the bank is harassing me for over $100 in fees. I told them in writing that anything coming in after March 28 should be returned. What do I do to stop this harassment? M.R., via e-mail

Dear M.R.: I see a couple of problems here. The insufficient funds fee meant that you wrote checks before the money was credited to your account. You can't work as close as you apparently did with the direct deposits. The checking account would have been free had you abided by the rules. That's not meant as a lecture; it's just the way it is. Perhaps it takes a couple of days before an account is officially closed at your bank. You should have contacted the Internet provider and given them a new account to bill. I don't know that you should have to pay as many extra fees as you have noted, but you should have to pay the amount that was paid on your behalf. Banks have to make a profit. When they offer "free checking," they charge fees for anything they are legally able to, including transgressions. You're only marginally profitable to begin with and, if they have to cover insufficient funds checks, they are going to lose money on you.

Dear Bruce: I am concerned. I am told that the government is not going to continue to issue HH Bonds. How can they do this to the citizens of this country? F.C., Ventura Calif.

Dear F.C.: The government has determined that it is not in their best interest to continue to issue these bonds so they are not going to do so. Private companies stop manufacturing products, lenders stop offering certain kinds of deals, and the government, in this case a borrower, says that they don't want to borrow money under the terms that were in effect for the HH Bonds. While you may not agree with that decision, it has been made, at least in the opinion of those government officials, because this is to the best interest of the U.S. taxpayer.

Dear Bruce: Back in 1998 I ordered several books and videos, and saved all of my sales slips and check receipts. Recently, I received a letter from a credit bureau stating that I owed for a book that I never ordered or received back in March 1999. How do I prove I never received this item? Do I have any recourse? Reader, via e-mail

Dear Reader: The burden of proof is on the person making the claim, not on you. I am delighted that you have receipts, which is very unusual going back 4-1/2 years. Write a letter to the collection agency saying that, "I did not order, did not receive and will not pay obligation herein referenced. If you wish to pursue this claim further, please provide me with a copy of the order, the date shipped, the date it was received with a copy of a delivery slip signed by me. In the absence of this documentation I will consider this matter closed."

Dear Bruce: I have a CD coming due soon. If I left it at my local bank it would renew at about 2 percent. However, on the Internet I find a company offering 4 percent for the same term. They claim that they are FDIC-insured. Is it safe to purchase these via computer? Loyal Reader, via e-mail

Dear Loyal Reader: As long as the institution is FDIC-insured (it is one thing to claim it; it's another to actually be insured by the federal government), then you are covered up to $100,000. As to the safety of the Internet, if you are transferring the money by bank wire to another bank for credit to your account, I don't think there's any real risk involved. I'm always more comfortable doing business with someone that I know or know by reputation. At the very least, I would make a phone call to that institution and get the pertinent data, including their FDIC coverage, and then confirm it.

Dear Bruce: I would like to know if I have to pay taxes on money that I get from my stocks? I have very little income and I am collecting worker's compensation. Are there any benefits for me selling them? Thank you. P.L., Montour Falls, N.Y.

Dear P.L.: There are rarely any advantages in selling stock other then taking losses against gains. Given what you have told me, I would be surprised if these gains and losses are going to be material. However, it could be that you have a very large portfolio that came to you before your injury. If there's any question in your mind, before you sell you should talk to someone who specializes in tax matters. In general, though, it's a fair statement that losses can be used to offset gains, plus a $3,000 loss can be taken against regular income.