Banco Popular Seeks Dismissal of Suit Alleging False Check-Fraud Report Led to McClafferty’s Arrest

Banco Popular has asked the District Court to dismiss a lawsuit filed by Matthew McClafferty and Social Hospitality Group, arguing that federal law protects the bank from liability for reporting suspected check fraud and that the complaint does not establish a factual basis for the claims against it. In its 19-page response, the financial institution argues that the lawsuit has “failed to make a single factual allegation against…Banco Popular’s parent company.” The bank also maintains that it is protected by immunity under “the safe-harbor reporting provision of the Annunzio-Wylie Anti-Money Laundering Act.” McClafferty and Social Hospitality Group, a business he co-owns, jointly filed the complaint. McClafferty alleges that Banco Popular filed a false police report against him because the bank’s internal processes for detecting bad checks were flawed. Banco Popular disputes that allegation. The bank argues that McClafferty’s February arrest on suspicion of check fraud did not resul...