check kiting


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check kiting

n.
The act of writing a check on a bank account in an amount in excess of actual funds on deposit in the account and then depositing that check in a second account at a different bank to create a spurious deposit there, allowing checks to be drawn, or credit secured, based on the second account, until the fraud is discovered.
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In the third quarter the Bank incurred a loss of $589,000 attributable to a check kiting fraud perpetrated by a customer of the bank.
Minkow's high-wire act merely included a collage of check kiting, loan fraud, and fictitious record-keeping activities that duped everyone from shareholders to accountants to the country's most savvy investment bankers.
Section 1344 targets offenses against financial institutions, including check kiting,(4) check forging,(5) false statements and nondisclosures on loan applications,(6) stolen checks,(7) unauthorized automated teller machine ("ATM") use,(8) credit card fraud,(9) student loan fraud,(10) bogus transactions between offshore "shell" banks and domestic banks,(11) automobile title frauds,(12) and diversion of funds by bank employees.
For example, computers are used to fight one major fraud, check kiting, which is taking advantage of uncleared checks to inflate an account balance artificially.
Institutions can use Wiz Sentri to fight money laundering and numerous forms of internal and external fraud, including wire/payments fraud, online fraud, check kiting and identity theft.
Butler explains his check kiting activity and attempts to boost his hometown's economy .
District Court judge last week sentenced John Mills, the former CEO of Affiliated Foods Southwest, to 41 months in a federal prison after the executive pleaded guilty in February to a single count of aiding and abetting bank fraud by participating in a check kiting scheme.
35 million as a recovery of a portion of its losses sustained in a check kiting scheme perpetrated by a commercial deposit customer during the quarter ended June 30, 2006.
823 (1995) (concluding that the bank fraud statute was amended to include check kiting which could not be prosecuted under [sections] 1014).
With no family members or friends to turn to for assistance, and instead of seeking help through legal channels, Greet committed a fraud known as check kiting.
Memento Security - Check Fraud is designed from the ground up to meet the challenges of detecting and stopping all types of check fraud, including On-Us Fraud, Check Kiting and Deposit Fraud.
Danny Ray Butler, who is currently serving a sentence for defrauding the Small Business Administration and check kiting against the $613 million Alabama One Credit Union in Tuscaloosa, Ala.