Check Kiting: A Viral Trend That Can Land You In Jail
Many people have recently viewed a video trend that supposedly exploits a “glitch” within the banking system, allowing them to deposit fake checks and then withdraw money without consequence. However, this “viral” phenomenon is merely old-fashioned check kiting. Check kiting is illegal in the Commonwealth of Pennsylvania, and a person doing so is guilty of the crime of passing a bad check. Banks do not stand for this type of behavior and will refer you to law enforcement regardless of the amount of money involved.
If you or a family member has been charged with check kiting or any other white collar crime, the LLF Law Firm Criminal Defense Team will stand by your side. Our team has experience defending against criminal charges and is ready to help you. To find out how, call 888-535-3686 or fill out our confidential, online contact form today.
Check Kiting Is Nothing New
Criminals have been engaged in the crime of check kiting for decades. Check kiting is a form of bank and check fraud that occurs when criminals attempt to take advantage of a bank’s “float period.” This period is the time it takes from depositing a check and having the funds credited to an account, and the time that your bank receives the funds from the other bank that the check is drawn from.
Criminals have long attempted to exploit the float period by depositing a check that is worthless or has insufficient funds and then withdrawing some or all of the funds before the check has cleared. However, banks have been aware of this scheme and have developed sophisticated measures to defend themselves.
Over the years, the float period has decreased, leaving less of an opportunity for thieves to withdraw money after the bad check has been deposited. Banks also routinely place holds on funds for a period of time until a check has cleared, and have developed software to identify suspicious activity. Despite these measures, check kiting remains a significant issue for banks.
Check Kiting Is a Crime Under Pennsylvania Law
A person engaging in check kiting in Pennsylvania is guilty of the crime of passing a bad check. Essentially, a person engaged in check kiting is knowingly presenting their bank with a check that they know will bounce and then stealing the money withdrawn. This crime is taken very seriously by both banks and law enforcement. Depending on the amount of money involved, check kiting can be prosecuted as either a misdemeanor or a felony.
The penalties for check kiting can be severe, including up to seven years in prison and $75,000 in fines. In addition, courts will typically order a person found guilty of check kiting to repay their bank for any lost funds.
The LLF Law Firm Can Help You
A conviction for check kiting or any other white crime can be devastating to you and your family. Your professional and personal reputation can be severely damaged by a criminal conviction, and it may be extremely difficult to obtain future employment. While the general public sometimes believes that white collar convictions result in lenient punishments, this is rarely the case. Conviction of a white collar crime can land you a lengthy prison sentence and potentially tens or hundreds of thousands of dollars in fines and restitution. Call 888-535-3686 or fill out our confidential online form.