Salvatore Scanio | Member of Ludwig & Robinson PLLC
Mr. Scanio has extensive experience in complex domestic and international litigation and regulatory matters, involving federal and state banking, financial transactions, insurance coverage, and contract and other commercial disputes.
Mr. Scanio represents banks, insurers and other companies in cases involving negotiable instruments under the Uniform Commercial Code (UCC), electronic bank payments, fraud, fiduciary duty, accounting, lender liability, loan losses, lost profits, statutory and regulatory violations, professional liability, class actions, and claims against the federal government. He advises clients as to liability, defenses and loss recovery on a wide range of bank fraud and corporate fraud schemes, including check fraud, credit and debit card fraud, unauthorized electronic funds transfers (EFT) including fraudulent wire transfers and ACH transactions, identity theft, check kiting, deposit account fraud, malware attacks, cybercrime, account takeovers, loan and mortgage fraud, embezzlement, and bank insider fraud.
He counsels banks, financial service firms and other clients on regulatory compliance, fraud prevention, policies and procedures, and risk management involving online banking, account opening, Bank Secrecy Act, money laundering, Know Your Customer, and check and wire fraud. He also advises clients on terms and conditions in deposit agreements, funds transfer agreements, online banking agreements, and other banking contracts. He has represented banks and other financial institutions in regulatory and corporate matters, including bank holding company, retail and electronic banking, lending and deposit activities, and privacy and compliance. He has acted as legislative counsel on financial modernization and legislation affecting financial services firms. His prior experience includes serving as in-house counsel with a large regional commercial bank.
He advises and represents insurers in fidelity and financial institution bond investigations, coverage disputes and litigation. He investigates and evaluates claims involving employee dishonesty, loan losses, check fraud, check kiting, fraudulent EFTs (wire transfers and ACH), and other losses brought under commercial crime and financial institution bond policies.
Mr. Scanio’s practice also includes litigation of cross-border disputes arising from international financial transactions, investment, intellectual property matters, and sales of goods and services. He previously was an international trade analyst with the U.S. International Trade Commission.
Representing insurer in subrogation against Big-4 and regional accounting firms for breach of contract, malpractice, and fraud in government-related audits of national non-profit: Hanover Ins. Co. v. PricewaterhouseCoopers, LLP, et al. (Pa. 2015)
Successfully represented PNC Bank in obtaining summary judgment at trial and affirmance on appeal, dismissing $5m case arising from wire and account activity related to distressed real estate investment scheme: Ivanhoe Investment Partners, LP, et al, v. PNC Bank, N.A., et al. (Md. App. 2015)
Phillips Realty Management, LLC v. PNC Bank, N.A. (D. Md. 2013): represented PNC in obtaining early dismissal of $1.5m UCC check fraud suit
Represented Northern Trust in suit to recover $16 million loan loss: Northern Trust Bank, FSB v. Wells Fargo Bank, N.A. (E.D. Va. 2011)
Defended Travelers/St. Paul in complex $18 million loan loss investigations and multidistrict coverage litigation: United Bankshares, Inc., et al. v. St. Paul Mercury Ins. Co., et al. (S.D. W.Va.); St. Paul Mercury Ins. Co. v. United Bank (E.D. Va. 2010)
Represented client in action against Big-4 accounting firms for malpractice in broker-dealer/asset management firm audits: Vigilant Ins. Co. v. PricewaterhouseCoopers, LLP (Conn. 2011) and Vigilant Ins. Co. v. Deloitte & Touche, LLP (Conn. 2010)
Represented South African clients in action against U.S. technology company arising from data compression software claims: Hentiq 3343 (Pty) Ltd., et al. v. Qbit, LLC, et al. (D.C. 2009)
Represented client in UCC warranty action for forged indorsements: National Union Fire Ins. Co. v. Kopernik Fed. Bank, FSB (D. Md. 2009)
Represented client in $6 million action involving fraudulent account opening and drafts: Nestlé USA, Inc. v. Wachovia Bank, N.A. (Pa. 2007)
Represented client in UCC warranty claims involving unauthorized indorsements against multiple depositaries
Represented client in suit against bank and conspirators involving unauthorized international wire transfers: Zhang v. NationsBank, et al. (D.D.C. 2007)
Represented client in UCC action arising from fraudulent account opening: Travelers Cas. & Surety Co. v. Bank of America, N.A. (E.D. Mo. 2007)
Represented client in actions involving fraudulent account opening, corporate-payee checks, and unauthorized ACH and ATM deposits: National Union Fire Ins. Co. v. Wells Fargo Bank, N.A. (C.D. Cal. 2005)
Represented a large specialized lender in connection with federal and state oversight relating to lending practices and its relationships with insured financial institutions
Represented bank through trial and appeals in Winstar-related breach of contract suit for lost profits upon disallowance of $30 million of regulatory capital: Citizens Financial Services, FSB v. United States (Fed. Cl. 2005)
Represented AIG in suit against depositary/drawee on altered checks: National Union Fire Ins. Co. v. SAC Fed. Credit Union, et al. (D. Neb. 2003)
Represented Travelers in action against drawee, intermediary and depositary banks involving large altered check deposited in Europe: Travelers Cas. & Surety Co. v. Fleet Nat'l Bank, et al. (S.D.N.Y. 2003)
Defended coverage claim and underlying claims against South Dakota bank/credit card issuer
Advised insurer on claim by Georgia bank arising from counterfeit checks where warranty rights against depositaries were implicated
Represented Travelers in audit malpractice trial: Travelers Cas. & Surety Co. v. Bertz & Co., et al. (E.D. Pa. 2001)
Prior Related Cases
Represented bank in landmark Winstar-related 14-month damages trial and subsequent appeal: Glendale Fed. Bank v. United States (Fed. Cl. 1997)
Represented banks in Winstar-related actions against the government resulting from breach of regulatory capital contracts: Commonwealth Bank v. United States; Southern California Fed. Savings and Loan Ass’n, et al. v. United States (Fed. Cl. 1999)
Represented bank in shareholder class action against bank and directors & officers alleging Rule 10b-5 violations for material misstatements and omissions, fraud, and breach of fiduciary duty: Feinberg v. Hibernia Corp., et al. (E.D. La. 1993)
Selected Professional Awards and Associations
American Bar Association: Business Law Section, Committees on Banking Law, Business and Corporate Litigation, Consumer Financial Services, Uniform Commercial Code; Tort, Trial and Insurance Practice Section, Committees on Business Litigation, Fidelity and Surety Law, Insurance Coverage Litigation
Defense Research Institute: Committees on Commercial Litigation, Electronic Discovery, Fidelity and Surety, Insurance Law
National Institute for Trial Advocacy, Trial Skills
Member, Federal Reserve System Secure Payments Task Force
Selected Publications and Presentations
Mr. Scanio regularly writes and speaks on banking and insurance topics, including:
In-house client seminars on the Uniform Commercial Code (Articles 3, 4, and 4A), Check and Deposit Account Fraud, Electronic Funds Transfers Fraud, and Insurance Coverage Issues and Investigations under Financial Institution Bonds, Commercial Crime Policies, and other Fidelity Bonds
Check Fraud: Liability and Defenses of Banks Under the Uniform Commercial Code (2005)
Check Fraud: Defending the Financial Institution Coverage Claim, or Minimizing the Covered Exposure, American Bar Association, Tort, Trial and Insurance Practice Section, Mid-Winter Meeting (Jan. 2005)