The insurer maintained that the check kiting
losses were in the nature of an extension of credit by the bank to which the exclusion should apply.
The board should have known that the subsidiaries didn't have the money in their bank accounts to cover the checks to Affiliated, "but nevertheless close to half a billion dollars in insufficient checks were being written on these accounts to perpetrate this massive check kiting
scheme," Cox said.
If the auditors had inquired, they would have learned that Minkow submitted phony tax returns and that banks closed his accounts for check kiting
, writing excessive non-sufficient-fund checks, using fictitious checks, and conducting loan fraud.
Butler pleaded guilty to check kiting
and fraud, and received a sentence of three years in prison, but upon completion of a substance abuse program later this year, he will be eligible for release to a halfway house, according to Butler's fiancee Paige Howard, who has handled many of Butler's legal affairs while he has been in prison.
Difficult to detect and prosecute, check kiting
schemes have gained popularity in recent years.
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.
The Department of Justice will aggressively investigate and prosecute Ponzi schemes, bank fraud, check kiting
, and other similar types of financial 'shell games' specifically designed to lull banks, investors, and employees into having a false sense of security.
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 .
Schick was sentenced in August 2004 to 97 months in federal prison for an unrelated scheme to defraud several banks through 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.