H.P. White Lab president alleges fraud Suit names bank, two companies HARFORD COUNTY

December 20, 1992|By Mike Farabaugh | Mike Farabaugh,Staff Writer

The president of a ballistics research and development laboratory in Street has sued two companies and their owner and a bank for $7.8 million, charging that they defrauded him of $95,000 three years ago.

Donald R. Dunn, president of H. P. White Laboratory Inc., filed suit in Harford Circuit Court Dec. 9, alleging civil conspiracy, fraud and deceit against Provident Bank of Maryland, Luby Ltd. of Havre de Grace, A&A Auto Rental of Perryville and Michael P. Luby of Perryville.

Luby is serving a 37-month sentence for a federal bank fraud conviction involving Provident Bank. He is being held temporarily at the Harford Detention Center.

Mr. Dunn contends that Luby and Provident Bank Vice President Larry W. Snyder sought his help Nov. 13, 1989, with a plan to assist Luby's purchase of four Ford vans for his auto rental business.

The suit alleges that Luby suggested that he write a $95,000 check to Mr. Dunn's company for the cost of the vans. In turn, Mr. Dunn would write a check for that amount to A&A Auto Rental. The plan was hatched because Luby did not want to risk violating his auto-rental franchise agreement, the suit charged.

Mr. Dunn said that he and Luby exchanged checks, but two days later, Luby returned, saying that he needed Mr. Dunn's check made payable to Luby Ltd., not A&A Auto Rental.

The suit alleged that Luby then went with Mr. Snyder, Stuart M. Wyeth, also a Provident Bank vice president, and an unidentified Provident security guard to the Havre de Grace office of County zTC Bank, where they secured a treasurer's check for $95,000 and deposited it in a Provident account.

Mr. Dunn also claimed that four days after depositing Luby's check for $95,000 in his County Bank account, he was notified that it had been returned for insufficient funds. He later learned that the proceeds of the treasurer's check were applied by Provident Bank to cover prior overdrafts of Luby Ltd. and A&A Auto Rental and Luby.

Mr. Dunn contended that those overdrafts existed when he was approached by Luby and Mr. Snyder.

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