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Samuel Hitman sold his Mercedes-Benz to Katrina Walters in exchange for a check

ID: 408061 • Letter: S

Question

Samuel Hitman sold his Mercedes-Benz to Katrina Walters in exchange for a check for $13,500 made out to Walters and indorsed to him. He gave her the title to the vehicle indorsed over to her. Walters transferred ownership of the vehicle, together with the ownership papers, to Benzel-Busch, which in turn sold it to A-Leet. Hitman discovered that the check given to him was originally issued in the sum of $13.50 and had been fraudulently raised by Walters. Neither Benzel-Busch nor A-Leet was aware of the fraud. Hitman then sued A-Leet to recover possession of the vehicle. Is Hitman entitled to recover the vehicle from A-Leet?

Explanation / Answer

NO because neither Benzel nor A-Leet are aware of the fraud.

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