check kiting

What is the name of your state? New York

amymast said:

What is the name of your state? New York

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My husband and I were robbed through our bank by a one-time friend who posted bad checks through our checking account in the sum of $15,000. There was no real money in the bank when my husband withdrew the funds for these checks and we had to pay the bank back for this sum of money. We are now trying to seek restitution from the person who actually did this so called "check kiting" and want to know what the statute of limitations is for this crime in our state.

Can you explain a little better, from what I understand a one time friend put checks through your bank. Your husband took the money out (why, if he knew they were coming not just close the account) the bank paid the checks anyway and you had to pay the bank back. Something is missing here.

I'm not sure I follow you factually either, but a case came down just last week that may impact your situation. I'll skip the boring parts, but it held that:

However, without a showing of a special relationship, one bank does not owe a duty to another to discover a check kiting scheme (see, Mid-Cal National Bank v. Federal Reserve Bank of San Francisco, 590 F.2d 561), and a bank owes no duty of care to non-customers with whom it has no special relationship in regard to a check kiting scheme.

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So the exact relationship of the parties here will be rather important in determining whether a viable claim exists.

You Are Guilty said:

I'm not sure I follow you factually either, but a case came down just last week that may impact your situation. I'll skip the boring parts, but it held that:


So the exact relationship of the parties here will be rather important in determining whether a viable claim exists.

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YAG, what you are referring to is really just one basic component of the laws regarding check kiting that states if Bank A discovers a check kiting scheme, they are not obligated to notify Bank B. In other words, whomever discovers the check kiting first, wins. The other bank will be the one to suffer the loss.