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Posted: Mon Oct 15, 2007 9:19 am Subject: Will I get arrested for check fraud?

HELP! I was trying to transfer money from one account to another, and thought the money was in the account at Bank A, on which I wrote the check. I then deposited this check at Bank B. The money did not show up and the check did not clear. I don't have the funds to make immediate restitution due to medical bills, so now I'm worried about getting arrested for kiting or check fraud. In addition, the bank paid a $1,500 item which I had attempted to stop from both the payee's end and the bank's end. However, the check cleared, I think because the payee changed the payee name on the electronic check to a different name. So now my account is $5,000 in the negative between those two occurrences! What a huge mess! I don't even know where to begin . . . what should I do?

Posted: Mon Oct 15, 2007 9:27 am Subject:

What state are you in? I doubt that you will be arrested for bounced checks. Please dont worry. You made a mistake, that is all. Did the bank pay the 1500.00 even though you did not have the money to cover it? Call your bank and see if you ccan set up some sort of pay plan to get yourself current.

Posted: Mon Oct 15, 2007 12:40 pm Subject:

Check kiting is a valid worry . . . . Especially nowdays banks are quick to prosecute for those types of "crimes". That is not to say that you commited a crime.

I think the best thing you can do is immediatly contact the bank, explain your situation, and set up a payment plan immediatly, even if you cannot make a payment for a while. You need to stay in communication with these banks, or else it will look like you were trying to float your balance, and they will be more likely to try and prosecute.

Posted: Mon Oct 15, 2007 5:30 pm Subject:

what is check kiting?

Posted: Mon Oct 15, 2007 5:35 pm Subject:

okay, don't need that answer looked it up. You aren't running from it, so does it fit the definition, I don't think so from what I read. Was the $5000 ever deposited in your account?

Posted: Tue Oct 16, 2007 7:28 am Subject:

For anyone that doesn't know -

Check Kiting is when the "kiter", who has two or more accounts of his/her own at different banks, writes a check on day one to him/herself from Bank A to Bank B (this check is referred to as the kite), so funds become available that day at Bank B sufficient for all checks due to clear. On the following business day, the kiter writes a check on his/her Bank B account to him/herself and deposits it into his/her account at Bank A to provide artificial funds allowing the check s/he wrote a day earlier to clear. This cycle repeats until the offender is caught, or until the offender deposits genuine funds, thereby eliminating the need to kite, and often going unnoticed.

The story posted above could fit the definition, because one check was written from an account that didn't have money to another account. I have heard of people that have had their accounts closed and reported to Chexsystems for fraud because of similar situations. I don't know that you would be prosecuted for it though. I would think they would only go after bigger fish.

Posted: Tue Oct 16, 2007 7:41 am Subject:

Well, this is interesting. I've never heard of this before. It seems like, with the turnaround for deposits these days, that it would be a very dangerous thing to do.
(Not that I'm saying that Elfalcon was doing this, because from the post, it seems like it was an honest mistake).
Elfalcon, I also think that you should contact the bank and make arrangements to pay. They will probably be more understanding if the contact is made quickly.

Posted: Tue Oct 16, 2007 8:00 am Subject:

Elfacon make sure you call the bank or its even better if you go in person and speak to the branch manager and work out some kind of arrangements. Goudah is correct about check kiting it happened to me about four years ago and the bank told me that if they wanted to they could prosecute me for that, i explained to them that it was not done intentionally and they made me speak to the fraud department and they were nice enough to make arragenments with me. Try to call them asap so that they don't think you are ignoring the problem. Good Luck

Posted: Tue Oct 16, 2007 12:28 pm Subject:

Thanks Katelyn, I was trying to get the point across that banks have a zero tolerance policy with this sort of thing, and even a totally innocent transaction can look like fraud to them. Communication is really important. I agree that it's better to go in person to the bank and talk to them. Ignoring the problem could cause it to snowball into a much larger problem.

ID theft risk mngr · Posted: Wed Oct 17, 2007 10:30 pm Subject: will I get arrest for check fraud?

Sounds like you need to know what your legal rights are and how to protect them. A policy is not a law but your bank will tell you what their policy is and can really 'scar' your credit rating. You did make an effort to stop a transaction and that business failed to follow through. If you have documentation of your efforts it would be in your best interest to get legal counsel to determine your next action. Advertisment removed per forum rules - Goudah Want more info email me email address removed per forum rules - Goudah. Time and the bank are not your friend right now.

Posted: Thu Oct 18, 2007 8:09 am Subject:

Yes, bank policy is not law, but check kiting is against the law, not just against bank policy.

Advertisments are against the rules here. This board is for advice, not advertising for your legal help.

Posted: Thu Oct 18, 2007 8:17 am Subject:

If your bank didn't cover this, you need to take immediate action for the overdraft. My son overdrafted his account and I didn't know this. We received a letter from the banks' attorney stating he had xx amount of time to take care of this. I marched his behind up there and we talked with an officer of the bank- made payment arrangements and took care of it.

Aslong as the bank knows you are trying to take care of this, it was a mistake,etc., they will probably work with you.

Good Luck--keep us posted..karen Very Happy

Posted: Thu Oct 18, 2007 10:29 am Subject:

Hey, guys! You know I have to jump in on this one. Smile

Check kiting is taken very seriously by banks. The first thing they will do is start enforcing the check hold policy with any deposits you make. That means that all deposits that aren't direct deposits or cash will not be available for a few business days. Read the rules and regs your bank gave you when you opened your account and it will explain your banks funds availability policy. That would be the least they can do. The fraud department could put restraints on the account saying no transactions allowed at all until they conclude their investigation. And, yes, it is within their rights to freeze your account without telling you. It's in that rules and regs book I just mentioned. I don't mean to scare anyone, but wanted you to be aware of wha the bank can and probably will do. Especially if you don't be proactive and speak to teh branch manager of where you opened your account.

Posted: Thu Oct 18, 2007 10:32 am Subject:

Oh...also...as far as that item clearing that you put a stop on. Did you pur an actual stop payment on it with the bank? Even if you did that, if the company changed any part of their payment demand, even something like flipping two letters in their name or adding LLC to the end of their name, the bank will end up paying it. Was it paid electronically or a paper draft item?

Posted: Sun Oct 21, 2007 4:39 am Subject:

If they did change the name, it should be illegal, they should have to give you the correct billing information. I can't believe a bank would clear an item that big if the funds were not there. That part sounds crazy to me also.

very worried · Posted: Sun Apr 06, 2008 11:16 am Subject: $10000 wire transfer

i wired 10000 dollars from someones account to my own i know this is a fenoly how much time can i get with no background and this being my 1st time offence? please help Crying or Very sad

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