Kiting

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Kiting

The unlawful practice of drawing checks against a bank account containing insufficient funds to cover them, with the expectation that the necessary funds will be deposited before such checks are presented for payment.

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1992) (finding under [sections] 1344(1), one need only show "scheme to defraud," which in check kiting scheme hinges on what defendant actually knew about status of accounts used); United States v.
1997) (finding that sentence enhancement based on loss sustained by victims of defendant's bank could be based on entire loss suffered by the bank, including amounts defendant had repaid since the discovery of his check kiting scheme); United States v.
Put simply, check kiting is accomplished by taking advantage of the float--that is, the time required for a check deposited in one bank to be physically presented for payment at the bank on which it was drawn.
1992) (unlike subsection (2), subsection (1) does not require a material misrepresentation and therefore, under [sections] 1344(1), a check kiting scheme can support a conviction of bank fraud); see also United States v.
8 million charge from the check kiting scheme and was partially offset by the elimination of personnel, transaction fees and other operating expenses related to the termination of the Wal-Mart ATM agreement.
The Company is aggressively pursuing collection of the check kiting loss from the customer, and there is also the possible recovery from insurance policies.
The decrease in other non-interest expenses was primarily due to a one time loss expense recorded in 2005 as a result of a check kiting matter and due to a decrease in expenses for chargeoff's on deposit accounts, and lower expenses on foreclosed and owned real estate properties during 2006.
Three counts related to the check kiting between accounts at Alabama One and West Alabama Bank and Trust, and three counts related to defrauding the Small Business Administration and another used auto firm.
Traditional anti-fraud systems focus narrowly on transactional activities such as credit card theft, check kiting and counterfeiting, but newer forms of identity theft often involve seemingly benign, non-transaction events, including legitimate activities such as opening a new credit card account or changing a password.
Madison also filed a counterclaim against Union Planters claiming the Tennessee bank knew about a check kiting scheme involving VSM Delivery and Freight Payment.
Excluding the check kiting charge, the prepayment penalty and the gain in the sale of equity securities, net income, (using a non-GAAP financial measure), for the first nine months of 2006 would have been $2.
He pleaded guilty to defrauding the Small Business Administration and check kiting in February 2014.