This is archived content from the U.S. Department of Justice website. The information here may be outdated and links may no longer function. Please contact if you have any questions about the archive site.

807. Check Kiting

If a bank insider is involved, a check kite can be prosecuted as a misapplication under 18 U.S.C. § 656, see United States v. Wolfswinkel, 44 F.3d 782, 786-87 (9th Cir. 1995); United States v. Ness, 665 F.2d 248 (8th Cir. 1981)(defendant bank officer arranged for insufficient funds checks to be paid out of the bank's funds in violation of bank procedure); United States v. Cades, 495 F.2d 1166 (3d Cir. 1974), or possibly under 18 U.S.C. § 1005. A check kite may also be prosecuted as a bank fraud under 18 U.S.C. § 1344. See Wolfswinkel, 44 F.3d at 784-85; United States v. Giordano, 489 F.2d 327 (2d Cir. 1973).

[cited in JM 9-40.000]

Updated January 21, 2020