The insurance company also claimed in its lawsuit that employees were not trained in regard to check kiting
and the credit union also did not review returned checks to spot potential check-kiting suspects.
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.
Federal prosecutors alleged a Michigan woman ran a $145 million check kiting
scheme that victimized the $137 million TruNorth Federal Credit Union in Ishpeming, Mich., and two other banks.
"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.
The order did not mention Danny Ray Butler, the former car wholesaler and Alabama One member whose construction loan, check kiting
and subsequent straw loans led to the disclosure of Alabama One's many leadership challenges.
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
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.
Contrary to allegations made by former Alabama One Credit Union member Danny Ray Butler, employees of the $602 million, Tuscaloosa, Ala.-based cooperative had no knowledge of his check kiting
scheme that took place in 2011 and 2012, John Dee Carruth, president/CEO for Alabama One, told CU Times.
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.