Stopped Payment

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kimbatka

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I issued a check to and individual. It was for payroll, it was not my mistake. See we had a man by the name George and a man they called George, which was not his real name. So when payroll hours were called in to me the foreman said George, instead of his real name. I issued the check for the wrong man.... This was on a Friday I stopped payment for the check on Monday. I was new at the company and no one told me that they called him by another name. So abou two weeks later I get a call from a man at a check cashing company, telling me that he cashed the check and when he presented it to the bank he was notified of the stop payment. How do I handle this situation? He sent me a fax telling me I need to pay the full amount plus a $5 check fee and a $20 dishonored fee. please help. I looked online and printed information about Section 3-302 and Section 5-328 but I'm not really clear as to what my obligation is as of now. He just sent me the fax today and the check was cashed on 2/25/05.
 
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