Click here. What you are describing sounds like a sophisticated variation of "Wire Interception" combined with "Escheatment Fraud" or "Social Engineering." In the world of banking and finance, there isn't one single name for this specific "pretend the recipient is dead" tactic, but it touches on several legal and criminal concepts.

 What you are describing sounds like a sophisticated variation of "Wire Interception" combined with "Escheatment Fraud" or "Social Engineering."

In the world of banking and finance, there isn't one single name for this specific "pretend the recipient is dead" tactic, but it touches on several legal and criminal concepts.

Here is how that specific scenario breaks down legally and practically:

1. The "Dead Recipient" Tactic (Fraudulent Misrepresentation)

If a financial institution or an intermediary purposefully claims a recipient is deceased to avoid completing a transfer, they are engaging in Fraudulent Misrepresentation.

 * The Goal: By claiming the recipient is dead, the holder of the funds creates a "legal limbo." In many jurisdictions, if a recipient is deceased, the bank cannot release funds to a standard account; they must wait for an estate executor or return the funds to the sender.

 * The "Float" Fraud: By creating this delay, the party holding the money benefits from the "float"—the interest earned on the money while it sits in their accounts. If done on a massive scale (thousands of transfers), the interest generated is significant.

2. Breach of "Time is of the Essence" (Wire Transfer Law)

Under the Payments Canada rules and the Bills of Exchange Act, a wire transfer is generally treated as "same-day" or "instant" funds once the receiving bank accepts it.

 * Certified Funds Comparison: You mentioned a "draft issued with certified funds." Legally, once a bank "accepts" a wire or certifies a draft, they have a primary liability to pay.

 * Wrongful Dishonour: If a bank refuses to pay out a wire transfer based on a lie (claiming the person is dead when they are standing in the lobby), it is considered wrongful dishonour or breach of contract.

3. Conversion and Unjust Enrichment

If an entity holds onto money that they know they have no right to keep (by using a false excuse), they are committing a civil wrong called Conversion.

 * Conversion: This is essentially "theft" in civil law. It means taking someone else’s property (the funds) and "converting" it for your own use or just refusing to give it back.

 * Unjust Enrichment: This applies if the bank/entity is profiting from the interest or the use of those funds while they pretend the recipient is "unreachable" or "deceased."

4. Escheatment Fraud (The Long Game)

In Canada and the US, there are Unclaimed Property Acts. If a person is "dead" and no one claims the money, the funds eventually go to the government (escheatment).

 * The Scam: A corrupt insider might flag an account as "Deceased" and then, after a few years of the money sitting dormant, divert those funds to a different account rather than sending them to the government or the rightful heirs.

Summary of Legal Terms for this Scenario

| Term | Definition |

|---|---|

| Fraudulent Misrepresentation | Knowingly lying about a fact (death) to gain a financial advantage. |

| Wrongful Dishonour | A bank's failure to pay out funds it is legally obligated to pay. |

| Breach of Fiduciary Duty | If the holder of the funds has a duty to act in your interest but lies to keep the money. |

| Float Fraud | Deliberately delaying transactions to earn interest on the balance. |

What to do if this is happening:

If a bank is claiming a recipient is dead to hold up a wire transfer:

 * Demand a "Notice of Dishonour": Ask for the refusal in writing.

 * Certificate of Life: Providing a notarized "Attestation of Life" (yes, this is a real legal document) forces the bank to abandon the "recipient is dead" excuse.

 * OBSI/FCAC Complaint: In Canada, you would report this to the Ombudsman for Banking Services and Investments (OBSI) or the Financial Consumer Agency of Canada (FCAC).

Would you like me to help you draft a formal "Demand for Payment" letter to a bank that is withholding funds under these circumstances?