What is Fictitious Payee?

Legal Definition
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 payble 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, ยง1.
-- Bouviers Law Dictionary
Legal Definition
A fictitious name inserted as that of the payee in a negotiable instrument, thus rendering it payable to bearer. See 30 Miss. 122, 64 Am. Dec. 154.
-- Ballentine's Law Dictionary