Hip Hop Beverage Corp. v. Bank of America CA2/2

FACTS

HHBC sued Juneice Deanna Michaux (Michaux), ANHM FZCO LLC (ANHM) and Bank of America based on the following allegations: HHBC hired Michaux as a corporate officer in 2006. In January 2010, she filed a fictitious name statement in Los Angeles County stating that she was an individual doing business as Hip Hop Beverage, and then she opened a corresponding account at Bank of America. When she opened the account, she used HHBC’s tax identification number. Next, she filed articles of organization for ANHM, a company with a name one letter shy of being the same as that of an HHBC customer, a company called ANHAM FZCO, LLC (ANHAM). Finally, she opened a bank account at JPMorgan Chase Bank (JPMorgan Chase) for ANHM. Once her accounts were set up, she instructed ANHAM to wire funds to her Bank of America account, and ANHAM did so because it reasonably believed it was wiring funds to HHBC. She moved those funds to the ANHM account with JPMorgan Chase. From the ANHM account, she deducted funds for her benefit, and then she wired the remaining funds to HHBC. HHBC reasonably believed it was receiving funds from ANHAM. Using this scheme, Michaux embezzled no less than $1,395,347.50 in…