Court filing prompts company to return wire transfers sent in error

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Monsey Jet 41 said he had no satisfaction in the bank; Took a lawsuit to recover nearly $20,000

LEGAL NEWS

Be careful. Be very careful when going to the bank to make a wire transfer. Because, as one Rockland company learned, a simple mistake can be costly and lead to litigation because banks won’t necessarily correct the mistake.

However, filing a complaint may be what it takes.

In a recent lawsuit filed in Rockland County Supreme Court, 138 Design LLC of Monsey, doing business as Jet 41, a private aircraft charter company, mistakenly wired $19,500 to Go Aviation, a Saranac Lake aircraft management company.

Jet 41 indicates in its filing that it intended to send the funds to another company with a similar name. The lawsuit, which is also suing Michael Klein, president of Go Aviation, says Jet 41 failed to collect its payment. The lawsuit also alleges that Klein is personally responsible for the non-payment of funds sent in error.

Jet 41 made several attempts to reach Klein to facilitate the return of funds via email and text. Following a phone call, Klein in a text message on Feb. 17 said, “Hello Peter, you say what did you do? I am currently in the middle of the Pacific Ocean sailing with very occasional satellite service. Jet 41 says it mistakenly wired $19,500 to Klein’s company. Klein replies that “it looks like a scam”. In the final text exchange, Klein said five days later, “It’s a big, unwelcome pain,” but according to the lawsuit, he never returned the money.

According to the lawsuit, Jet 41 also tried unsuccessfully to have its bank reverse the transfer.

Jet 41 in February 2022 received a message from Chase Bank at 250 South Middletown Road in Nanuet from Commercial Relations Manager Ryan Travelpiece saying the bank is unable to return the funds because “the receiving bank is not returning the funds” as it was said by Klein’s bank that a solution had been found to return the money to Jet 41.

According to Chase Bank, a wire transfer can only be stopped or suspended for correction if notice of cancellation is received before the wire transfer is complete, and that in most cases wire transfers are irrevocable.

The lawsuit alleges the unjust enrichment and conversion of Jet 41’s money and seeks judgment on the amount of the wire transfer.

In a favorable turn of events, the director of Jet 41 said the company received more than half of the funds this week and expects the issue to be resolved. However, companies in a situation like this are usually obligated to also pay the correct supplier while waiting for their funds to be returned, and must pay legal fees and court costs to recover the funds owed.

“We had to file a complaint to move it,” he said. “Something woke him up.”



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