Embezzlement is a fraudulent appropriation of a monetary fund by one or more people to whom the fund has been entrusted. Like all other crimes this offense too is covered by the statute of limitation. It is a type of misappropriation crime. There is state wise variation in embezzlement related penalties and the statute of limitation. If you have been accused for this type of crime, getting in touch with a criminal lawyer (who is specialized in practicing White collar crime cases) will be the best option.
Cheque kiting is a common form of embezzlement by fraudsters or white collar criminal. It involves making use of non-existent funds. The offender writes a value in the cheque greater than the actual deposited amount with the bank. Some forms of this embezzlement method involve more than one person and banks.
There are several types of cheque kiting that distinguishes on from the other depending on their nature:-
- Circular kiting- It involves more than one bank account. One or more people may be involved in this action. Cheque of $ 100 of bank-1 is deposited in Bank-2 (with previous deposit of $100) and again a cheque of $200 is deposited in bank-1 account. Although the actual balance in bank-2 is $100. Funds that are being transferred are artificial.
- Retail based kiting- Instead of a bank, another sources are now targeted. An offender makes payment with a cheque in a supermarket and gets cash back on the total purchase. The cheque takes some time to clear. Although the offender has very little money in his account compared to the amount of cheque. The offender in the meantime has made similar payments on other purchases. By the time the shopkeepers understand what has happened to them they are duped of their goods as well as cash back amount. This offense is common in suburbs where there is a presence of supermarket chains.
- Corporate kiting- This obviously involves large sums of money. By virtue of their size and transaction volume they easily gain access to funds. This is done against the facility given to big companies to deposit money without temporary hold, For example the case of E. F. Hutton & Co. was a stock brokerage firm (since 1904).
The banking sector is strictly regulated to prevent this type of crime. Offender can be prosecuted with a fine of up to $1,000,000.00, imprisonment for up to 30 years, or both. First-time offenders with no criminal background have received stiff sentences. However, it will not be considered a crime if a person issues a cheque with the information of fund insufficiency at the moment.
Big cities like Miami, New York, etc. where transaction involving huge amounts and big corporations exist is where this offence also exists. In case your shopping establishment has faced loss due to kiting, approach a Miami Criminal Lawyer. This of course holds true if you are a local of Miami.