Gerome has two checking accounts at two banks across town from each other. Gerome is paid on Fridays. On Wednesday, he must pay his electric bill. He has no money in either account and knows it. He deposits a check drawn on Bank A into Bank B and writes a check for the electric bill on Bank B. On Thursday, he deposits a check drawn on Bank B into Bank A. On Friday, he deposits his paycheck in Bank B. The check is more than enough to cover the electric bill check and the previous deposits and no checks bounced. Gerome may have committed the crime of:

Question

Quizplus · Accepted Answer

Gerome has committed check kiting, which involves writing a check from one bank account to deposit into another when there are insufficient funds in the first account, with the intention to create artificial funds. This is considered fraudulent behavior because it exploits the time it takes for checks to clear to falsely inflate account balances.

Gerome Has Two Checking Accounts at Two Banks Across Town