Check Kiting

Check kiting is the illegal act of leveraging the natural delay of a bank to discover whether a check is valid in order make use of non-existent funds. Initially, this type of theft was accomplished by cashing checks at a bank, but now, with the advent of computers and more efficient tracking systems, that method of kiting is less prevalent.

More often than not, kiting happens when checks are exchanged for goods and services. While the civil action of worthless checks is comparatively easy to prove and can grant a plaintiff triple the damages, the corresponding criminal charges can present certain difficulties when it comes to establishing issues of proof. Knowledge, or mens rea, must be demonstrated in every criminal case. In white-collar crimes specifically, it’s more difficult to establish this knowledge due to the fact that the crime usually occurs over a longer period of time. It is difficult to pinpoint at which time the accused’s guilty intent was formed with circumstantial evidence.

In a check kiting case, knowledge is extremely difficult to prove because the person who received the check typically has little contact with the suspect. Therefore, there are comparatively few circumstantial facts that the prosecution can use to establish this knowledge.

If you have been accused a white-collar crime or a check-related crime, call the attorneys at Barakat Law for a consultation.