Kiting

Definition

A crime involving writing a check on an account, Account A, with insufficient funds and depositing it in another account, Account B, and then writing a check on Account B and depositing it in Account A to cover the first check written on Account A. Kiting takes advantage of the time it takes banks to clear checks. Before the bank in which Account B is held has time to clear the check written on Account A, the kiter has already written a second check on Account B and deposited it in Account A, making it appear as though the bank in which Account A is held has sufficient funds. The bank in which Account B is held then honors the check written on Account A. Through kiting, the kiter obtains an illegal, interest-free loan. Also called check-kiting and check-flashing.

Illustrative caselaw

See, e.g. Williams v. United States, 458 U.S. 279 (1982).

See also