What is Check Kiting?

Check kiting is a form of fraud that is illegal under state and federal law, and for which a person can face charges under the Florida Statutes or under a federal fraud statute. It is a type of offense that involves the use of multiple bank accounts to cover insufficient funds that the check writer does not actually have. What are the specific details of this type of offense, and what are the consequences in the event of a conviction? Our Tampa fraud defense attorneys can explain in more detail below, and we can speak with you today about getting started on your defense if you are facing any type of fraud charges under state or federal law.

Understanding Check Kiting

What is check kiting and how does it happen? Sometimes known simply as “kiting,” check kiting is an act in which a person or entity has multiple bank accounts and writes a bad or worthless check from one bank account to another. How this works, then, is that the worthless check from Bank Account A (for which there are insufficient funds to cover the amount of the check) is deposited into Bank Account B, making it temporarily seem as though that amount is present in Bank Account B. Another check or debit is then made, or the cash is withdrawn, from Bank Account B for the value of deposited bad check from Bank Account A. In effect, check kiting shorts a bank’s assets.

In the federal case U.S. v. Flowers, the Sixth Circuit defined check kiting as “an offense where the offender tricks two or more banks into inflating account balances by drawing money from insufficiently funded bank accounts.” Some banks have waiting periods after a check is deposited before the funds are available, which is a practice designed to prevent check kiting.

Charges for Check Kiting Under State or Federal Law

A person can be charged with check kiting under state or federal law.

When a person is charged with check kiting in Florida under state law, they are typically charged under Section 832.05 of the Florida Statutes, which prohibits giving worthless checks, drafts, and debit card orders. It is a serious misdemeanor for check kiting under $150 and a felony for check kiting when the check is for $150 or more.

Under federal law, a person can face felony check kiting charges under the federal bank fraud statute.

Contact Our Tampa Criminal Defense Attorneys for Assistance Defending Against Check Kiting Allegations You Are Facing Under State or Federal Law

Check kiting is a serious fraud offense that needs to be taken seriously if you are facing charges under state or federal law. Depending on the value of the check at issue, you could be facing felony charges that could result in a sentence involving years of imprisonment in the state or federal system. In some cases, you could be facing both state and federal charges in relation to check kiting. One of the experienced Tampa fraud defense lawyers at the Law Offices of Daniel J. Fernandez, P.A. can speak with you today to learn more about the details of your case and to begin working with you on a defense strategy. We routinely defend clients who are facing charges under state and federal law, and we can answer any questions you have. Contact our firm for assistance.

Sources: 

justice.gov/archives/jm/criminal-resource-manual-807-check-kiting

leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0800-0899/0832/Sections/0832.05.html