Bank rules required the employee to examine checks for possible
check kiting, and the employee was not authorized to approve overdrafts in excess of $25,000.
The public will become jaded, and revelations of expense-account padding,
check kiting and insider trading will lose their power to shock.
"The total amount of this
check kiting scheme was $474,800,000."
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.
"We use very few people, but computers are everywhere." 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.
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.
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. That is, he wrote checks on one bank when there were insufficient funds in his account to cover them.
FORMER AFFILIATED FOODS Southwest CEO John Mills may have taken the Fifth in a December civil suit related to the company's bankruptcy proceedings, but last week he owned up to $11.5 million in
check kiting that cost U.S.