I stopped payment on a $500.00 check and I am being asked by the place that cashed the check in California to pay for the face value of the check, costs and if I don’t pay I will need to pay court costs too.
1. My company is incorporated in Illinois.
2. I sent a corporate check for $500.00 on February 27, 2013, for travel expenses to a prospective employee
. He signed a statement to use funds for travel.
3. The next day I discovered that the prospective employee had lied on some information he supplied to me.
4. I then called my bank and stopped payment on the check.
5. I sent an email to the person that I was no longer going to hire stating that I had stopped payment on the check.
6. I have copies of everything that I have stated.
7. Four weeks later the subject took the check to a check cashing service in California.
8. The California check cashing service cashed the check on April 8, 2013, and presumably gave the subject $500.00.
9. On April 12, 2013, I received a certified mail letter from the check cashing company stating that if I did not pay them $550.00 they will sue my corporation.
I have the following questions concerning this matter:
1. What court can they sue my incorporated company in, small claims
, circuit or superior?
2. What state will they need to sue my corporation in, California or Illinois?
3. Will they need to serve me with a process server or can they do this by U.S. mail?
4. Since I sent an email to the subject stating that I stopped payment on the check 3 weeks prior to him cashing it and 1 day after issuing the check, my corporation and the check cashing company are victims of fraud. Can the check cashing company collect additional charges over the $500.00 face of the check from me since this was fraud?
5. Where should I file a criminal complaint
against the subject for the fraud?
6. Since I was defrauded by the subject and sent him an email telling him that I issued a stop payment can I be held liable by the check cashing company for the $500.00 face amount, as I am a victim in this situation?