5.18.2010
Calo Quoted About Check Kiting in the Minneapolis St. Paul Business Journal
Lane Powell Shareholder Bob Calo was quoted in the Minneapolis St. Paul Business Journal on May 17 in an article titled “Alleged check kiting incident cost Pinehurst Bank $2M.” The article discusses a bank that lost $2 million due to a customer’s alleged check kiting activity.
“Check kiting can be prosecuted as a felony under federal bank fraud laws, and there have been more prosecutions since laws were toughened 20 years ago … Bank officials are typically supposed to file a suspicious transactions report with the U.S. Treasury Department when they suspect check kiting, and it is their interest to do so because bank insurers generally cover fraud losses … Bankers who fail to notify authorities of suspicious transactions and whose actions assist a check kiter could get into possible trouble for aiding and abetting,” said Calo.