Don't spend money that doesn't belong to you!
Their bank account showed a deposit of $280,277 in October. Herbert knew he didn't deposit that money and that it didn't belong to him . He says he called the bank several times and was told that the deposit was accurate. So Herbert and his wife promptly began spending the money, and then the bank said the deposit was a mistake. (Duh!) The bank tried to take the money back, but over $157,000 of it was already spent. The bank says that Herbert never brought the error to the bank's attention. They're suing the Starbirds to get the money back.
Sorry, but mistake or no mistake, the Starbirds should not have spent that money. They should have tried harder to give it back to the bank, because they knew it was not theirs. Spending it was just plain wrong -- and stupid.
Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.