Salvatore Scanio

Salvatore 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, cybersecurity, privacy, data protection, fraud prevention, payments, 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.

He also represents companies and individuals in business formation and ongoing corporate governance, including limited liability companies, corporations, and nonprofits.

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.

sscanio@scaniopllc.com

202.963.2100

Education

Tulane University Law School, J.D., cum laude, 1991

Tulane University, A.B. Freeman School of Business, M.B.A., 1991

Tulane University, B.A., cum laude, with departmental honors, 1986

Admissions

District of Columbia

United States Court of Appeals for the Federal Circuit

United States Court of Federal Claims

United States District Court for the District of Columbia

United States District Court for the District of Colorado

Languages

Italian

French

Representative Experience

Mr. Scanio’s experience includes the following matters:

Representing company in $5MM counterfeit check fraud loss against responsible banks

Advised on enforcement and dishonor of checks (Ariz. 2024)

Timely advised on cybercrime involving email spoofing and new payment instructions, avoiding any loss (Colo. 2024)

Consulted on $1.7MM employee check fraud through ATM deposits (Cal. 2023)

Counseled on positive pay defense and UCC check warranty claims (Fla. 2023)

Opinioned on insurance coverage of counterfeit check under commercial crime policy (Md. 2023)

Assisted in formation of complex multi-party joint venture – limited liability company (Del. 2023)

Successfully represented U.S. subsidiary of European company in dispute with minority member (D.C. 2021)

Obtained prompt full recovery for Polish company in ACH cybercrime loss (2020)

Collected $1.2MM in judgment, interest, and attorneys’ fees through enforcement of post-judgment discovery proceedings (D.C. Sup. 2019)

Successfully represented 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 $5MM 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 $1.5MM 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 endorsements 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)

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 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

U.S. District Court cites recent article, Liability of the Beneficiary’s Bank for Cybercrime, in Elkin Valley Baptist Church v. PNC Bank, N.A., No. 23-1798, 2024 U.S. Dist. LEXIS 162888 (W.D. Pa. Sept. 10, 2024)

Liability of the Beneficiary’s Bank for Cybercrime Involving Fraudulent Funds Transfers, 79 Bus. Law. 607 (2024)

NAIC Insurance Data Security Model Law: Key Provisions and Adoption to Date, ABA, Tort Trial & Insurance Practice Section, Cybersecurity and Data Privacy Committee (Winter 2021)

Cybercrime and Funds Transfer Fraud – Recent Developments, ABA Business Law Section, Banking Law Committee Webinar (Oct. 21. 2020)

Technology and Salvage: Using Social Media in Recovery and Allocating Cybercrime Funds Transfers to Third Parties, ABA, Tort Trial & Insurance Practice Section, Fidelity and Surety Law 2020 Midwinter Conference (Jan. 31, 2020)

11th Circuit Court of Appeals quotes prior UCC article in cybercrime funds transfer case, Peter E. Shapiro, P.A. v. Wells Fargo Bank, N.A., 795 Fed. Appx. 741 (11th Cir. 2019)

Interbank Liability for Fraudulent Transfers via SWIFT: Banco del Austro, S.A. v. Wells Fargo Bank, N.A., 36 Banking & Fin. Services Pol’y Rep. 8 (Dec. 2017)

Cybercrime: Maximizing Opportunities and Minimizing Threats for Financial Institutions, The Knowledge Group Webinar (Apr. 2017)

Quoted in Tom Bergin and Nathan Layne, Special Report, Cyber thieves exploit bank’s faith in SWIFT transfer network, Reuters (May 20, 2016)

Payment Card Fraud, Data Breaches, and Emerging Payment Technologies, XXI Fidelity L.J. 59 (2015)

Payment Card Fraud and Emerging Payment Technologies, Fidelity Law Association Annual Conference (Nov. 2015)

Contracting out of the Uniform Commercial Code: Reducing Bank Liability by Shortening the One-Year Notice for Reporting Check Fraud,33 Banking & Fin. Services Pol’y Rep. 15 (Nov. 2014)

Counterfeit Cashier’s Checks: Avoiding Both Fraud and Revenue Losses, BAI, Payments Connect 2014, The Future of Payments Fraud, Las Vegas (Mar. 2014)

“Surging, Swift and Liable? Cybercrime and Electronic Payments Fraud Involving Commercial Bank Accounts: Who Bears the Loss?” 16 J. Internet L. 3 (Apr. 2013)

Cybercrime and Online Banking Fraud: An Overview of the Rules for Allocating Commercial Account Losses, ABA Business Law Section, Commercial Law Newsletter (Fall 2012)

Malware and Fraudulent Electronic Funds Transfers: Who Bears the Loss?, Fidelity Law Association Annual Conference (Nov. 2010)

Malware and Fraudulent Electronic Funds Transfers: Who Bears the Loss?, 16 Fidelity L.J. 101 (2010)

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)

Selected Professional Awards and Associations

American Bar Association: Business Law Section, Committees on Banking Law, Payments and Electronic Banking, Business and Corporate Litigation, Cyberspace Law, Cybersecurity, Financial Services and Payments, Consumer Financial Services, Legal Analytics, Uniform Commercial Code; Tort, Trial and Insurance Practice Section, Committees on Business Litigation, Cybersecurity and Data Privacy, Fidelity and Surety Law, Insurance Coverage Litigation

National Institute for Trial Advocacy, Trial Skills

Member, Federal Reserve System Secure Payments Task Force

Volunteer, DC Bar Pro Bono Center, Small Business Legal Clinic

Observer, Drafting Committee on the Uniform Commercial Code and Emerging Technologies