Woman says bank gave her counterfeit $100 bill: Deborah Powell said Bank of America would cut her a check for the money.

Nov 26, 2008 (The Roanoke Times - McClatchy-Tribune Information Services via COMTEX) -- BAC | Quote | Chart | News | PowerRating -- Like many customers who have gone before, Deborah Powell assumed she was getting real money when she cashed a check at a bank, put the money in her purse and headed out the door.

But in her stack of bills, another financial institution found phony funds.

A counterfeit bill, in other words, given out by a bank.

"You go to the bank thinking you're getting legitimate money," a surprised Powell said.

But not this time.

It all began with a car accident on Halloween.

Powell, a social worker, was taking her son to day care when another car struck the side of her car. The Roanoke County resident received a $5,000 check as her insurance settlement.

Her bank wanted to put the money on hold for several days to ensure the check cleared. So on Nov. 17, Powell cashed the check at the insurance company's bank, Bank of America.

A teller in the downtown Roanoke branch handed Powell the money in an envelope with the flap taped down, Powell said.

Powell said that without opening the envelope, she went straight to her bank, Roanoke Valley Credit Union, to convert the cash to a cashier's check to pay for a new vehicle.

"I didn't even touch it," she said. "It was still sealed."

A credit union teller opened the envelope and swiped each bill with a counterfeit-detecting pen with Powell standing there, Powell said.

The pen flagged one of the bills. Powell said she was shown a $100 bill with a dark line across it. The pen works by making a dark mark on bad bills and leaves no line when a bill is good.

The U.S. Secret Service received a report on the incident, documenting the capture of a purported $100 bill with the serial number CB58704003A. Powell was told that federal officials verified it was fake.

"We get [possible counterfeit] money in all the time," said Roanoke resident and Secret Service agent Wade Fleming. He had no immediate comment on the Powell case.

U.S. commercial banks reported in 2005 that about one in every 10,000 bills they handle turns out to be fake, according to a report by the U.S. Department of the Treasury.

At first, Powell said Bank of America told her she was out of luck.

Since she had taken the money out of the branch, her loss was her responsibility.

Bank of America spokeswoman Nicole Nastacie confirmed that is the bank's policy.

Asked whether Bank of America believes customers should check money they receive from tellers before leaving, Nastacie said no, but added that it is a step customers may take if they choose.

"Customers ... can take a look at their bills to see if there are any differences," Nastacie said. "I'm saying customers can do it. I'm not saying they must. I'm not saying they're expected to."

Tuesday, Powell said she received a call telling her the bank would give her $100 -- in check form this time.

Asked how the incident might have happened, Nastacie said tellers are trained to spot phony money, but "there may be times that we're unable to fully detect it."

But Nastacie said the payment to Powell is not evidence the bank believes its teller gave Powell a fake bill.

"As a courtesy, we were able to work with the consumer to resolve the issue," Nastacie said.

Woody Windley, president and chief executive officer of Powell's credit union, described the fake as "dingy looking" and worn with "scraggly edges."

It might not have stood out in a stack of bills, but was an obvious fake on close inspection, he said.

Windley said he urges consumers who handle volumes of cash to buy a counterfeit-detecting pen and mark bills on receipt.

If a bill is bad, hand it back "and say, 'Give me a real one,' " he said.

That's easier than "going through all the hassle that this lady is going through," he said.

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