Kiting

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Kiting

Used in banking to refer to the practice of depositing and drawing checks at two or more banks and taking advantage of the time it takes for the second bank to collect funds from the first bank.
Also refers to illegally increasing the face value of a check by changing the numbers on the check.
In the context of securities, refers to the manipulation and inflation of stock prices.

Kiting

1. The illegal practice of deliberately misrepresenting the value of a security or transaction in order to extract more funds from a counterparty.

2. The illegal practice of writing a bad check on an account at one bank, depositing it at a second bank, and withdrawing cash. Check holds have made kiting more difficult than it once was.

3. The illegal practice of defacing a check by increasing the amount of money written on it. One may take advantage of bad handwriting, for example, by changing "ten" to "twenty" on the check.
References in periodicals archive ?
In the months before the Danny Butler check kite became public, a Butler employee said he personally delivered checks worth hundreds of thousands of dollars to executives at Alabama One Credit Union and West Alabama Bank and Trust.
The MAERCKS-lift (Musculo-Aponeurotic Elevation and Retention with Check Kite Suspension) has been the doctor's proud creation modeled after what he learned with the SMAS-lift superstar Dr.
6 million was missing when the check kite was discovered.
In order to prosecute these cases successfully, the FBI developed the Check Kite Analysis System (CKAS),(1) a computer program that helps law enforcement agencies to reduce the complexity of investigating kiting schemes and to prove the perpetrator's intent to defraud.
We are pleased that, excluding the check kite loss, we would have made a profit for the third consecutive quarter.
When the banks discovered PATEL's check kite, the Wells Fargo account had enough money to cover the checks he had written, but BankBoston was left with a loss of approximately $171,000.