Kiting

(redirected from Check Kites)
Also found in: Dictionary, Medical, Legal.

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 ?
This section's primary purpose was to allow for federal prosecution of check kites, although it also criminalized a variety of schemes directed at federally insured financial institutions.
Funding engaged in two separate check kites relating to various checking accounts it maintained in area banks.
One of the counts to which Scarpaci pleaded guilty pertains to one of the checks involved in one of the check kites discussed earlier.