bad checks, Fraud?

[tracytt]

What is the name of your state? What is the name of your state? CO
Isn't it illegal to have 2 checking accounts and write checks back and forth to cover each other? For example, on monday check 1 is written, drawn on bank A and deposited to bank B, then on Tuesday check 2 is written, drawn on bank B and deposited back to bank A , thus giving the appearance of having a balance in the account. My sister was doing this and now it is catching up to her. She was making the deposits with her ATM cards and both banks have closed her debit cards. Now it appears the banks are holding the checks for deposit rather than depositing them right away into her account. Or are they building a case against her? I told her I think this borders on fraud. She lost her job and started this to pay her bills that were coming due and she didn't have enough income from her husband to pay the bills.
What are the consequences for such actions?

 

[CombatTN88]

What is the name of your state? What is the name of your state? CO
Isn't it illegal to have 2 checking accounts and write checks back and forth to cover each other? For example, on monday check 1 is written, drawn on bank A and deposited to bank B, then on Tuesday check 2 is written, drawn on bank B and deposited back to bank A , thus giving the appearance of having a balance in the account. My sister was doing this and now it is catching up to her. She was making the deposits with her ATM cards and both banks have closed her debit cards. Now it appears the banks are holding the checks for deposit rather than depositing them right away into her account. Or are they building a case against her? I told her I think this borders on fraud. She lost her job and started this to pay her bills that were coming due and she didn't have enough income from her husband to pay the bills.
What are the consequences for such actions?

I don't think it is fraud. The case is bad check charge which banks misunderstood.

It is not illegal to have two checking accounts, but it is not good idea to write checks back and forth. The bank sometimes waited a day or two to deposit money which could create a big problem.

I don't think your sister would be prosecuted because she did deposited money in the first place, so it doesn't cover bad check which she did not intend to do that.

Good Luck, Combat