from
Bouvier's Law Dictionary, Revised 6th Ed (1856)
FICTITIOUS PAYEE, contract. A supposed person; a payee, who has no
existence.
2. When the name of a fictitious payee has been used, in making a bill
of exchange, and it has been endorsed in such name, it is considered as
having the effect of a bill payable to bearer, and a bona fide holder,
ignorant of that fact, may recover on it, against all prior parties who were
privy, to the transaction. 2 H. Bl. 178, 288; 3 T. R. 174, 182, 481; 3 Bro.
C. C. 238. Vide Bills of Exchange, Sec. 1.